1,200 jobs at risk as The Original Factory Shop calls in administrators

The Original Factory Shop (TOFS) will this week become the latest retailer to call in administrators, putting about 1,200 jobs at risk.

Sky News has learnt that the discount chain, which was already on the brink of collapse when it was bought by Modella Capital last year, is expected to appoint Interpath to handle its insolvency as soon as Wednesday afternoon.

TOFS, which opened its first shop in the late 1960s, trades from approximately 130 stores.

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Sources said that Interpath was expected to continue to trade the estate during the administration process.

Modella has been holding talks with third parties about a sale of the business since filing a notice of intention to appoint administrators earlier this month, although retail experts are sceptical that a buyer for a meaningful part of TOFS will be found.

If the insolvency is confirmed, it would be the second major retailer to collapse this week.

The accessories chain Claire’s – also owned by Modella – appointed Kroll as administrator to its UK and Irish operations on Monday, putting about 1,300 jobs at risk.

A combination of government policy, landlords’ demands to take back many of TOFS’ better sites and a poorly handled transition to a new logistics provider had impacted the discount chain’s financial performance.

Modella also owns businesses including WH Smith’s historic high street estate, which it has rebranded as TG Jones, as well as Hobbycraft.

The retail industry continues to face significant headwinds, with chains including Poundland having closed significant numbers of shops.

Modella has been contacted for comment, while Interpath declined to comment.