High Street chain at risk

The Original Factory Shop’s – TOFS – owners Modella Capital announced on Monday that insolvency proceedings would soon begin.

However, the latest update from the Annan High Street outlet on social media this week said that it was ‘business as usual’.

Across the UK and Ireland, The Factory Shop has 140 stores and 1220 staff.

Investment firm Modella took over the chain in early 2025.

Accessories and jewellery shop Claire’s, which used to have a store in Dumfries, also owned by Modella, is at risk as well.

Modella said: “This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.

“In these circumstances, administration is the only option. In both cases, the legacy effects of trading prior to our ownership left them highly vulnerable.

“The climate on the high street remains extremely challenging and TOFS and Claire’s are not alone in experiencing difficulties.

“This is borne out by recent Sensormatic statistics and other data sources suggesting an alarming drop-off in pre-Christmas footfall.

“A combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly.

“It’s a simple fact that if retailers can’t make money, they risk having to close – and jobs across the country are lost.”