Exclusive: The Original Factory Shop sold to Hobbycraft owner Modella
The Original Factory Shop has been acquired by Hobbycraft owner Modella Capital, Retail Gazette has learnt.
The Original Factory Shop has been acquired by Hobbycraft owner Modella Capital, Retail Gazette has learnt.
The private equity firm, which also has its eye on WHSmith’s high street business, has snapped up the discount chain’s 180 UK stores and its workforce of around 1,800 employees.
Modella made a last minute bid for the discount chain last week after talks with In The Style owner Baaj Capital stalled.
The sale of the retailer marks the end of more than 17 years ownership by private equity firm Duke Street.
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It is thought that Mike Ashley’s Frasers Group and Fortress, which owns Poundstretcher and Majestic, had also expressed an interest in the acquiring The Original Factory Shop.
Duke Street had been exploring a sale of the discount chain for several years and brought in advisors at Teneo in December to handle the process. It previously worked with Deloitte in 2023 to manage a sale.
The Original Factory Shop plunged to a pre-tax loss of £1.7m in the year to 26 March 2023, down from a profit of £1.4m the year before. Sales slipped 4% to £118m.
The Original Factory Shop is the latest retail acquisition from Modella Capital after it snapped up Hobbycraft and 119 of its stores at the end of August.
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