The Original Factory Outlet (TOFS), the independent discount retail chain, is set to be sold after more than 17 years under the ownership of private equity firm Duke Street.
Sky News has learned that Baaj Capital, a family office which counts Style and Party Supplies Amscan International among its investments, has emerged as the favorite to buy TOF.
Retail industry insiders said a deal had not yet been reached but could be reached in the coming days and announced as early as next week.
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Rival suitors for the business are understood to have included Mike Ashley’s Frasers Group and Poundstretcher, which is owned by the investment group’s fortress.
Terms of Baaj’s potential purchase were unclear Friday.
Established in 1969, TOFS trades from over 180 stores across Britain.
It sells beauty brands such as L’Oreal, sportswear brand Adidas and DIY tools made by Black & Decker.
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The chain was bought by Duke Street in 2007, with the exiting shareholder supporting the company through the Covid-19 pandemic with an injection of more than £10 million.
TOFS is now no remaining bank debt.
Duke Street declined to comment, while Baaj Capital was contacted for comment.