The Original Factory Shop (TOFS), a well-known discount retail chain, is currently examining strategic directions with new advisors.
- Duke Street Capital, the private equity firm owning TOFS since 2007, has appointed Teneo for guidance in this exploration.
- Previously, TOFS collaborated with Deloitte to initiate a sale process, indicating ongoing strategic evaluations.
- Despite sale considerations, TOFS remains operational and anticipates strong Christmas sales.
- The pursuit of a strategic sale aligns with Duke Street’s historical efforts dating back to 2013.
The Original Factory Shop (TOFS), a reputable discount retailer, has engaged new advisors to examine its strategic options, which could potentially lead to a sale. Duke Street Capital, the private equity firm that acquired TOFS in 2007, has appointed Teneo to oversee this strategic process, as reported by The Times. This initiative follows TOFS’s collaboration with Deloitte last year, further emphasising the retailer’s exploration of various strategic avenues.
A representative from TOFS stated that the company regularly assesses its future prospects and is evaluating a breadth of strategic options. The representative added that the business is continuing its operations as usual and expects good performance during the bustling Christmas season. These remarks reflect a typical business strategy where companies explore multiple pathways to maximise their potential, while ensuring stability in their current operations.
Notably, Duke Street Capital’s efforts to reposition TOFS have been ongoing for several years. Since 2013, there have been discussions around engaging advisors to facilitate a sale, which reportedly valued the chain at over £100 million at that time. In 2016, the firm appointed Rothschild to conduct a strategic review, which was anticipated to result in an auction. Such historical context highlights Duke Street’s long-term strategy to either enhance or divest its investment in TOFS.
TOFS’s exploration of a sale is a continuation of strategies aimed at improving its market position and financial health. Despite these strategic discussions, the company maintains its daily operations without disruption, ensuring consumer confidence and business continuity.
The Original Factory Shop’s ongoing strategic assessments, guided by experienced advisors, signify its commitment to prudent business management amid evolving market conditions.
