In The Style backer said to be mulling purchase of The Original Factory Shop

Baaj Capital, the investor behind fast fashion retailer In The Style (ITS), is believed to be mulling a takeover of the The Original Factory Shop (TOFS), a high street budget retailer that has been under the wing of private equity firm Duke Street since 2007.

According to Sky News, TOFS is “close to being sold” to Baaj Capital, which the publication said had emerged as a frontrunner in a sales process. Retail industry insiders for the media outlet noted that a deal was yet to be reached, but could be struck in the coming days. The terms of the deal were unclear last week.

TOFS operates more than 180 stores across the UK, throughout which it stocks everything from beauty brands like L’Oréal to sportswear labels like Adidas, as well as DIY, gifting and more. After purchasing the retailer, Duke Street supported TFOS through the pandemic with a capital injection of 10 million pounds.

In Sky News’ report, it was suggested that Mike Ashley’s Frasers Group and Poundstretcher were also believed to be among the interested parties in a potential takeover.

Baaj Capital made headlines in 2023 when it snapped up ITS’ operating subsidiary, In The Style Fashion Limited, in a total cash deal of 1.2 million pounds. The sale came after the fast fashion retailer concluded a strategic review of its business, and lowered its full-year profit outlook upon experiencing “market-wide cost-of-living pressures on consumer demand”, among other factors.