Two bidders are reported to be interested
140 shops and 1,100 workers remain at risk as the hunt for a new buyer for The Original Factory Shop continues. Owner Modella Capital is reported to have had two bids to buy the chain, but no deal has yet been reached.
Modella has extended its notice of intention to appoint administrators for TOFS, reports The Grocer. Modella said it could place the chain into administration earlier this month Modella said it had no choice but to start insolvency proceedings for both TOFS and Claire’s Accessories thanks to the challenging High Street economy.
Modella bought TOFS in February 2025 and Claire’s in September, as well as buying WH Smith’s High Street branches in June. Since buying TOFS, 40 branches have been closed.
Claire’s and TOFS were put into administration, after their owner said “last-ditch” measures had fallen through, putting about 2,500 UK staff at risk of redundancy.
A spokesman for the company said earlier this month: “We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.
“In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.”
Modella said tough retail conditions, including from government policies, were causing British businesses to “suffer”. “The climate on the high street remains extremely challenging, and TOFS and Claire’s are not alone in experiencing difficulties,” the firm said.
“A combination of very weak consumer confidence, highly adverse government fiscal policies, and continued cost inflation, is causing many established and much-loved businesses to suffer badly. It’s a simple fact that if retailers can’t make money, they risk having to close, and jobs across the country are lost.”
Modella bought more than 150 Claire’s shops last year, but 145 were not included in the deal, leading to their closure. The fashion accessories chain had appointed administrators for its UK and Ireland business after filing for bankruptcy in the US.
Modella has become a significant force in the British retail industry, having bought Hobbycraft in 2024.
Founded in 1969, TOFS originally started by selling soap manufactured by its founder, Peter Black. The shop now offers a frequently changing inventory that includes fashion and footwear, home and gardening, beauty and fragrance, groceries and electricals.
