Huge discount store with 178 shops closes two more locations

A well-known discount retailer is closing more stores as financial pressures continue to reshape the retail landscape.

May 16, 2025 - 18:18

Huge discount store with 178 shops closes two more locations

One of the industries heavily affected by the Covid pandemic was retail. Though the pandemic is now behind us, it left long-term consequences for these businesses.

Each struggling retail chain seems to face a similar set of challenges, including lingering impacts from the pandemic, inflation-driven higher operating costs, rising interest rates, and harsh competition.

In April 2025, U.S. retail sales decreased 0.1% month over month but improved 5.2% year over year, according to the U.S. Census Bureau. Motor vehicle and parts dealers saw a 9.4% yearly increase, while food services and drinking places increased 7.8% from April 2024.

While overall sales figures don’t indicate a downturn, several large retailers have still closed numerous locations this year in an effort to maintain profitability.

And business challenges aren’t limited to the United States.

In the UK, retail sales dropped sharply in March 2020 due to pandemic lockdowns and fluctuated for about a year, according to the UK Parliament, citing The Center for Retail Research.

While sales returned to pre-pandemic levels by March 2021, they have mostly remained below those levels since August 2022. The exception is household goods stores, whose sales continue to be stable.

Online sales remain higher than before the pandemic, especially in the UK.

In 2024, a record 7,537 stores closed due to the collapse of 34 retail chains, marking the highest number of store closures since 2007. However, fewer employees were affected, as many closures involved small businesses with limited staff.

Closures seems to have continued in 2025, with one major discount retailer confirming this week it is closing two more locations.

A discount retailer will be shuttering some locations.
Image source: Getty Images

Major UK discount chain closes two more stores

Discount retailers often see their customer base change with market trends. Their business strategy is based on keeping prices as low as possible amid various economic circumstances.

Low prices help maintain their customer base and give them an advantage over competitors. However, pricing merchandise too low can erode profit margins.

One huge discount chain in the UK confirmed this week it had closed down two more locations, reports The Sun.

The Original Factory Store (TOFS) confirmed on May 14 in a Facebook post that its store at Market Place, Staveley (Cumbria) will permanently close on July 12.

“With a heavy heart, we regret to inform you that the rumours are true,” reads the post.

“The original factoryshop Staveley has served you for 20 years and will be closing its doors for the final time on the 12th of July. We have loved being a part of this community, in fact, no — we are proud! Why not pop in and grab a bargain, or even say hello and goodbye?"

More closings:

TOFS’ store on Charles Street Milford Haven, a town in Pembrokeshire, Wales, also confirmed the closure, while touting a 30% off closing-down sale.

TOFS struggles, faces rent renegotiation at 88 other locations

The Original Factory Shop has a decades-long history, being established in 1969 as the original off-price retailer. It offers a wide range of popular products and quality brands at discount prices.

It also manufactures its own branded products across the clothing, footwear, home, and seasonal categories.

Duke Street Capital has owned TOFS since 2007, but struggled to keep it afloat. In February 2025, it was sold to private equity firm Modella Capital, which also owns Hobbycraft.

At the end of April, Modella Capital set up plans to initiate a company voluntary agreement (CVA). Businesses often use CVAs to avoid going bankrupt, which can help prevent store closures or the company from shutting down completely.

Through the CVA, Modella Capital is trying to reduce rent costs at 88 of its 178 stores.

If the company doesn’t reach an agreement with landlords, it may have to close more stores. Over the past 12 months, it has already closed more than a dozen.