Lancashire firm to close stores as CVA plan approved
Lancashire based chain The Original Factory Shop has agreed a Company Voluntary Agreement proposal which will see it close 32 of its 124 stores while reducing rents at its remaining locations.
The company is the latest in a long line of retailers to be hit by a fall in spending and changing customer habits.
High profile CVAs have included House of Fraser, New Look and Mothercare.
Private equity firm Duke Street had agreed to provide £10m in cash to the company previously.
At the same time the firm – which has its headquarters in Burnley – also launched a CVA proposal announcing plans to close 10% of its store estate (32 stores) and reduced rents for the remaining 92.
In June, the company saw its credit insurance by Euler Hermes pulled following planned stores closure announcements.
Last year the discount retailer reported a profit drop of £3.1m, despite turnover rising by £5 m to £190m.
In March of last year chief executive Tony Page stepped down from his role.
The list of shops to shut include Aylesbury, Bargoed, Barry, Bearwood, Brighton, Buckley, Bury St Edmunds, Catterick Garrison, Church Stretton, Colywn Bay, Dumfries, Frome, Helston, Lockerbie, Maesteg, Morpeth, Oswestry, Penicuik, Perth, Pontarddulais, Ramsey, Salisbury, Sheeness, Stockbridge, Tredegar, Walsall Wood, Wantage, Welling, Whitley Bay, Wick, Woodseats, York and a depot in Penrith.
