The owner of Hobbycraft has made a late swoop to buy The Original Factory Shop (TOFS) after talks with a rival suitor stalled at the eleventh hour.
Sky News understands that Modella Capital, which has also been pursuing WH Smith’s high street stores in recent weeks, is close to trumping rival bidder Baaj Capital with a solvent deal to buy TOFS.
One executive elsewhere in the retail industry said they understood that a deal could be struck within days.
If completed, it would bring the curtain down on more than 17 years of ownership by Duke Street, the private equity firm.
TOFS is an independent discount retail chain trading from more than 180 stores across the UK.
Rival bidders for the business are said to have included Mike Ashley’s Frasers Group and Poundstretcher, which is owned by the investment group Fortress.
Established in 1969, TOFS sells beauty brands such as L’Oreal, the sportswear brand Adidas and DIY tools made by Black & Decker.
The chain was bought by Duke Street in 2007, with it having supported the company through the COVID-19 pandemic with an injection of more than £10m.
TOFS is now understood to have no remaining bank debt.
Duke Street declined to comment, while Modella Capital has been contacted for comment.