Modella Capital reportedly snaps up The Original Factory Shop

Budget retailer The Original Factory Shop (TOFS) may have found its buyer in Modella Capital, a private equity firm which has previously invested in Hobbycraft.

This is according to Retail Gazette, which reported that Modella made a “last minute bid” for the discount chain last week.

The media outlet stated that Modella swept in after talks between TFOS’ parent company, Duke Street, and In The Style owner, Baaj Capital, came to a halt.

Modella is now believed to have secured ownership over TFOS’ 180 UK stores, in which around 1,800 individuals are employed.

The retailer stocks a wide range of products, from beauty brands like L’Oreal to sportswear labels like Adidas, as well as DIY, gifting and more.

In recent years, however, its financial position came under question, particularly for the year to 26 March 2023, when it swung to a pre-tax loss of 1.7 million pounds, while sales fell 4 percent.

Its soon-to-be-former owner, Duke Street, has operated TFOS since 2007, but had been mulling a sale of the business in more recent years, and eventually appointed advisors at Teneo to oversee an official sales process in December 2024.

Various media had also speculated that Mike Ashley’s Frasers Group and Fortress were among other interested parties eyeing TFOS.

FashionUnited has contacted Modella Capital and Duke Street with requests to comment.