The Original Factory Shop has been purchased by Modella Capital, the owner of retailer Hobbycraft.

The private equity firm emerged as a front-runner in a bid for The Original Factory Shop last week, with In The Style owner Baaj Capital previously in the mix.

Modella Capital has taken on the chain’s 180 UK stores and around 1,800 employees, according to Retail Gazette. It’s also reported to be looking at WHSmith’s high street business.

Other bidders were reported last week to have included Poundstretcher, which is owned by investment group Fortress, and Frasers Group.

The Original Factory Shop has been owned by private equity firm Duke Street for more than 17 years, and it has been exploring a sale of the discount chain for years. 

Modella Capital purchased Hobbycraft in August, along with its 119 stores.

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