New TOFS proprietor plots retailer closures and hire talks with landlords

The brand new proprietor of The Unique Manufacturing facility Store (TOFS) is drawing up plans for a radical restructuring of the low cost retailer simply weeks after taking management.

Sky Information has learnt that Modella Capital – one among two remaining bidders for WH Smith’s excessive road arm – has drafted in advisers to discover choices for TOFS together with an organization voluntary association (CVA).

Metropolis sources stated on Tuesday that Interpath had been engaged to work on the plans.

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A serious distribution centre can be thought to characteristic in potential proposals for a restructuring.

It’s not regarded as targeted on compromising different lessons of collectors.

Any so-called ‘landlord-led’ CVA which triggered retailer closures would inevitably result in job losses amongst TOFS’ workforce, which was stated to quantity about 1,800 individuals on the time of final month’s takeover.

Additional particulars of the plans, together with the timetable for launching a CVA – which requires court docket and creditor approval – have been unclear on Tuesday.

TOFS, which sells magnificence manufacturers equivalent to L’Oreal, the sportswear label Adidas and DIY instruments made by Black & Decker, trades from about 180 shops.

The chain, which was based in 1969, was purchased by the personal fairness agency Duke Avenue in 2007.

Duke Avenue had tried to promote the enterprise earlier than, having supported it by the COVID-19 pandemic with a money injection of greater than £10m.

It bought the corporate to Modella with no remaining financial institution debt.

The doable CVA at TOFS comes amid a frenetic interval of dealmaking for Modella.

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Along with vying with Alteri Traders for the historic WH Smith excessive road chain, it’s pursuing a restructuring of the Hobbycraft chain it acquired final summer season, Sky Information reported final week.

Rival bidders for TOFS are stated to have included household workplace Baaj Capital, Mike Ashley’s Frasers Group and Poundstretcher, which is owned by the funding group Fortress.

Modella and Interpath declined to remark.