The owner of The Original Factory Shop has kicked off a sale process after more than 15 years as the discount retailer’s owner.

TOFS

Duke Street is working with advisers at Deloitte on a sale of the TOFS with prospective buyers, according to Sky News.

It has been said that a number of trade and financial investors had shown interest in the company, however the likely valuation is unclear.

TOFS was established in 1969 and employs 1,500 around the UK, with recorded pre-tax earnings close to £7m last year.

It has been part of Duke Street since 2007 when it was bought for £68.5m from the private equity arm of Barclays. 

TOFS trades from around 180 stores nationwide and is said to be targeting the acquisition of up to 30 more outlets from struggling retail rivals.

The retailer sells brands such as Adidas, Calvin Klein, Jimmy Choo and L’Oréal at a lower price than high street prices.

The company closed around 30 stores in 2018 through a restructuring process called a company voluntary arrangement. This paved the way for Duke Street to cut rent to put TOFS in a better financial position.

TOFS is likely to be attractive to buyers at this time as inflationary pressures are causing consumers to turn to discount retail offers, according to analysts.

Retail Week reached out to TOFS owners Duke Street, who declined to comment.

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