Background

The Original Factory Shop (also known as TOFS) is a UK-wide department retail chain that was established in 1969, and sells well-known high street brands at discounted prices across over 200 national stores. To support growth the company was seeking more flexible facilities than those provided by the incumbent banking syndicate.

Action

The company approached FRP to identify and secure new debt facilities for the business. During unprecedented market conditions our Debt Advisory team worked to swiftly understand the issues that were important to the company and ran a highly competitive process to deliver a flexible and market leading finance solution, quickly identifying three firms who could exceed the client’s expectations. The team managed the debt raising process to optimise lender terms, and selected a lender to complete the transaction.

Outcome

A £12 million facility was completed in a deal which delighted all partners, including the sponsor. The flexible financing solution will meet the ongoing working capital needs of the business, and supports The Original Factory Shops’ future growth aspirations of opening 50 new stores over the coming years.