The owner of The Original Factory Shop, one of Britain’s biggest independent discount retailers, is firing the starting gun on a sale process after more than 15 years.

Sky News understands that Duke Street, TOFS’ owner since 2007, is working with advisers at Deloitte on discussions with prospective buyers.

Sources said a number of trade and financial investors had expressed an interest in the company, the likely valuation of which was unclear on Tuesday.

TOFS trades from about 180 stores across the UK, and it is understood to be targeting the acquisition of up to 30 more outlets from troubled retail rivals.

It sells brands including Adidas, Calvin Klein, Jimmy Choo, L’Oreal and Under Armour at substantial discounts to high street prices.

In 2018, the company closed approximately 30 stores through a restructuring process called a company voluntary arrangement.

That deal cleared the way for rent cuts as Duke Street sought to put TOFS on a more sustainable financial footing.

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Established in 1969, TOFS employs more than 1,500 people and recorded earnings before interest, tax, depreciation and amortisation last year of close to £7m.

It last changed hands in 2007, when Duke Street bought the company for £68.5m from the private equity arm of Barclays.

That 15-year duration is an unusually long one by the standards of the private equity industry.

Analysts have said that TOFS is likely to be attractive to buyers at a time when inflationary pressures are driving consumers to value-driven retail offerings.

Duke Street declined to comment.

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