TOFS stores and head office closed as Interpath begins winding business down

A source with knowledge of the situation said that the last TOFS stores were closed by Interpath administrators on April 4, while head office staff were let go yesterday when the Bolton head office closed for the final time.

Interpath has kept on “a very small number” of the retailer’s finance team for another week to help “administrators as they wind down the business”.

While there had been rumours of a potential bid to buy TOFS out of administration and save a small portfolio of stores, Retail Week understands those discussions have ceased after no deal could be reached.  

Interpath said in a statement to Retail Week: “Rick Harrison and James Clark were appointed as joint administrators to The Factory Shop Limited on January 28 2026. Upon appointment, the online store was closed immediately, while all 137 stores continued to trade while the joint administrators assessed options.

“A phased closure of the store portfolio was implemented, considering the financial position. Without any viable offers to take the business forward, it was not possible for The Original Factory Shop to continue trading, and all remaining stores were closed on April 4 2026.

“The majority of employees have been made redundant, while a small number of staff have been retained to assist the joint administrators in their duties as they move towards formally winding up the business.

“A specialist team is in place to support impacted staff with making redundancy payments service claims.”

TOFS collapsed into administration in late January 2026, with the brand’s 137 stores kept open in a bid to sell through existing inventory, with its then 1,180-strong workforce being kept on.

As was first reported by Retail Week, the brand made a third of its head office staff redundant on February 4.

It also emerged that the business, which was formerly owned by Modella Capital, had collapsed into administration owing suppliers £9m, including former supply chain and logistics provider Unipart, to which it owed £1m.

Unipart had threatened to slap TOFS with a winding-up petition to try and recoup the £1m, after terminating the contract in January after less than six months in place.

On the day TOFS collapsed into administration, chair Milton Guffogg told staff that he’d been left with “no choice but to put the business into administration” after 11th-hour rescue talks for the brand collapsed.

Modella Capital had originally approached The Range owner CDS Superstores about taking on the business, but Retail Week understands that the private equity firm also approached Mike Ashley with an offer, although no deal could be agreed.

Guffogg told staff at the time: “As you know, we have been going through a sales process, and that’s why we extended the notice of intent [to appoint administrators].

“A number of parties were interested, and we gave them a bit more time. For different reasons, those parties have fallen away or have exceeded the time limit on it.”

He went on to say that: “By putting it into admin, it doesn’t mean that parties will not pick the business up out of administration, but it doesn’t give any guarantees that they’ll do that. I was really left with no choice.”

Modella acquired the discount chain and 180 of its stores in February 2025. It drafted in advisers at Interpath shortly after to explore options for the business, including a company voluntary arrangement.

Modella said at the start of the year that the company did not have a “realistic possibility of trading profitability again”, despite its “last-ditch attempt to rescue” it.