The Original Factory Shop has relocated its headquarters and closed its distribution centre amid a restructuring process.
The discount chain has exited its operations in Burnley in Lancashire and moved into a new office space in Bolton as part of its company voluntary arrangement (CVA).
The retailer’s distribution is to be handed over to a third party, The Grocer reported.
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The Original Factory Shop plans to pay little to no rent on some of its poorer-performing stores for a period between four and 22 months as part of its CVA, which was approved by creditors in May.
The restructuring process was launched shortly after the company was acquired by Hobbycraft owner Modella Capital in February.
TOFS widened its pre-tax losses from £1.7m to £5.6m in the year to 31 March, which it attributed to “another challenging year with the continued cost of living crisis including the continued impact of recent high inflation and interest rates”.
The retailer opened 27 new stores during the period and closed 20 less profitable ones as leases expired.
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