The brand new proprietor of The Unique Manufacturing unit Store (TOFS), certainly one of Britain’s main unbiased low cost retailers, is making ready to unveil a package deal of savage lease cuts for its retailer landlords.
Metropolis sources stated the CVA – which requires court docket approval – could possibly be unveiled inside days.
Property sources cited business rumours that vital retailer closures and job losses might kind a part of TOFS’ plans, whereas calls for for two-year rent-free durations at some outlets are stated to additionally characteristic.
A spokesman for Modella declined to remark.
Modella, which additionally owns Hobbycraft, purchased TOFS from its earlier proprietor, Duke Avenue Capital, simply two months in the past.
Virtually instantly, it engaged restructuring specialists at Interpath to work on the plans.
Sources have speculated that dozens of TOFS shops might shut below a CVA, whereas a significant distribution centre can also be thought to characteristic within the proposals.
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 the takeover.
TOFS, which sells magnificence manufacturers akin 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 non-public fairness agency Duke Avenue in 2007.
Duke Avenue had tried to promote the enterprise earlier than, having supported it by way of the COVID-19 pandemic with a money injection of greater than £10m.
