DUNGANNON’S Original Factory Shop is set to close on Christmas Eve following the completion of unsuccessful negotiations between the store’s landlord and the company.
In June of this year, The Original Factory Shop announced plans to close 32 stores including York, Brighton, Aylesbury and Dumfries citing poor trading conditions as the company entered.a CVA (Company Voluntary Arrangement).
It is understood that a clause in the CVA has allowed the landlord of the shop’s Dungannon premises to serve notice on The Original Factory Shop. Despite the company describing the Dungannon store as ‘well performing’ they have been left with no choice but to confirm that the store will close soon.
Although no date has been set in stone, it is expected that Christmas Eve will be the store’ s last day of trading.
However, staff concerned about the future of their jobs have been offered some hope. The Original Factory Shop understood to be in close liaison with the store team and looking to get back into the community if other premises can be found.
Speaking about the decision to close the store, a spokesperson for The Original Factory Shop said: “It’s a great disappointment to have been served notice on this store. We tried really hard to find a suitable agreement with the landlord, especially as this is a store that has been performing well and where we are proud to play an integral part in the community.”
Speaking about the CVA, an insolvency procedure that restructures debts and closes loss-making stores, a TOFS spokesperson said: “The CVA promises to put the business on a much stronger, financial footing.
“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.”
In 2017 the discount retailer reported a profit drop of £3.1 million, despite turnover rising by £5 million to £190 million.