The Original Factory Shop (TOFS) has received the green light to go ahead with its Company Voluntary Agreement (CVA) proposal.
The plans will see 32 stores and a distribution centre close, and new investment ploughed into the troubled firm by its private equity owner Duke Street.
A spokeswoman for TOFS said: “The CVA has been approved, meaning the new investment from Duke Street and the debt write-off from their lenders will now go ahead, putting the business on a much stronger, financial footing to deliver the turnaround plan.
“While this is a tough measure, reflective of the broader retail environment, it is good news that TOFS will be in pole position to push ahead with their new ‘journey to growth’ strategy.”
However it’s not good news for Lockerbie or Dumfries, with both stores earmarked for closure, at a so far unknown date.
The Lockerbie building, on Main Street, has been cursed with closure issues.
It was previously a Co-op and acted as other small supermarkets before being closed for years until taken over by TOFS.
The closure news has saddened councillor Adam Wilson, he said: “It’s disappointing to see the Factory Shop close. The company had invested in this property to bring it back into use.
“Lockerbie High Street is one that is flourishing with both well established businesses and new enterprises, while other high streets are seriously struggling.
“I would encourage the Factory Shop company to engage with the council and local businesses to ensure that this closure does not lead to a chain reaction of closures.”¶
