The Original Factory Shop CVA approved, 32 stores to close

The Original Factory Shop (Tofs) has received a green signal to go ahead with its Company Voluntary Agreement (CVA) proposal, which mean it would not close 32 stores of 124 stores while reducing rents on the rest, reports Daily Star.

Earlier, according to Company Rescue, private equity firm, Duke Street had agreed to provide 10 million pounds (13.2 million dollars) in cash to the company. At the same time, Tofs also launched a CVA proposal announcing plans to shut 10 percent of the store estate (32 stores) and reduced rents for the remaining 92.

While the company revealed rise in revenues for the year to April 2017, pre-tax profits declined by just over 1.5 million pounds (1.9 million dollars). Following this, insurance company, Euler Hermes pulled their credit insurance and the company decided to close stores.

The list of shops, Tofs plans to shut, the report added, include Aylesbury, Bargoed, Barry, Bearwood, Brighton, Buckley, Bury St Edmunds, Catterick Garrison, Church Stretton, Colwyn Bay, Dumfries, Frome, Helston, Lockerbie, Maesteg, Morpeth, Oswestry, Penicuik, Perth, Pontarddulais, Ramsey, Salisbury, Sheerness, Stockbridge, Tredegar, Walsall Wood, Wantage, Welling, Whitley Bay, Wick, Woodseats, York and a depot in Penrith.

Picture:The Original Factory Shop website