Okay, I'm actually gutted about this one. The Original Factory Shop in Peterhead is shutting down next month, and I'm not even being dramatic when I say that my aunt literally texted me about this yesterday with three crying emojis. She's been shopping there since it opened!
This is the latest casualty in what feels like teh never-ending retail apocalypse hitting our high streets. And trust me, I've been covering these closures since 2019, and they just keep coming.
What the hell is happening to our discount shops?
The Peterhead closure is particularly painful because it hasn't even been open that long. One local shopper commented online: "Not long opened." Talk about a short run.
According to a staff member I spoke with (who was understandably not thrilled about the situation), the store will likely shut its doors for good sometime in June. The retail unit is already listed for rent on TSA Property Consultants' website. That was quick.
Locals are devastated. "Oh no I love that shop," wrote one Facebook user, while another mentioned, "I feel for the staff, they are always very nice." God. Poor employees.
The domino effect
This isn't just happening in Scotland. Two other TOFS branches are also closing - one in Milford Haven, Wales, and another in Staveley, Derbyshire.
The Staveley location will shut on July 12th (mark your calendars if you want those final bargains), while the Milford Haven branch doesn't have a confirmed closure date yet but has already launched a closing down sale with discounts up to 30%.
I drove past a TOFS last weekend actually... seemed busy enough. Shows what I know.
Behind the scenes: Financial drama nobody asked for
The real story here is what's happening with Modella Capital, the private equity firm that owns TOFS. Back in April, they launched a company voluntary arrangement (CVA) to try renegotiating rents at 88 of their 178 stores.
For those who don't speak corporate jargon, a CVA is basically a last-ditch attempt to avoid going bust. It lets businesses negotiate with landlords to try staying afloat.
If this doesn't work? Around 176 head office and warehouse staff could lose their jobs. And TOFS has already closed more than a dozen stores in the past 12 months.
Why are our high streets turning into ghost towns?
I remember walking through my hometown high street in 2018 and counting six empty shops. Went back last Christmas and it was more like sixteen.
Online shopping started this decline, but inflation has been the final nail in the coffin for many retailers. When people are choosing between heating and eating, that £15 homeware impulse buy just isn't happening.
PwC recently reported that retailers are abandoning high streets for retail parks where parking is free and shoppers can access "greater convenience." I spent £4 on parking last time I went shopping in town. For two hours! No wonder people are shopping online.
The numbers are brutal
According to the Centre for Retail Research, more than 13,000 high street stores closed in 2024 alone. That's 37 EVERY SINGLE DAY.
Independent shops were hit hardest - 11,340 shut their doors for good, a shocking 45.5% increase compared to 2023.
And 2025 looks even worse. The centre predicts around 17,350 more closures, partly due to increases in employer National Insurance contributions and minimum wage hikes.
Since April, employers have been paying NICs at 15% instead of 13.8%, starting from £5,000 rather than £9,100. My friend who runs a small gift shop said this change alone might force her to cut staff hours. His response: "already updating my resume."
Listen. I'm not saying the minimum wage increase isn't needed - it absolutely is. But without support for small businesses, we're just going to see more empty shops. And more communities losing their hearts.
I'll update this story when I hear more about the exact closure date for Peterhead.
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Financial literacy is essential for making informed decisions about budgeting, saving, investing, and managing debt. It empowers individuals to understand financial concepts, evaluate risks, and navigate complex financial products, leading to better financial stability and long-term wealth building.
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- A survey by the American Psychological Association found that 72% of Americans reported feeling stressed about money at some point in the past month.
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Managing debt wisely involves understanding your financial obligations and creating a structured repayment plan. Begin by listing all debts from smallest to largest, including interest rates and minimum payments. Consider using the snowball method, where you focus on paying off the smallest debts first, which can provide motivation. Alternatively, the avalanche method prioritizes debts with the highest interest rates to minimize overall interest paid. Make consistent payments above the minimum on your chosen debts while maintaining regular payments on others. Additionally, consider consolidating high-interest debts into a single loan with a lower rate, which can simplify your payments and reduce interest costs.
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