THE future of a major discount chain with 187 shops is uncertain with hundreds of jobs at risk.
, the new owner of the Original Factory Shop,has drawn up plans to renegotiate rents at 88 of the company's 178 stores, according to Sky News.
The proposals are contained in a company voluntary arrangement (CVA), a last-ditch restructuring process, which was launched on Thursday.
A CVA is a way of restructuring that means a can continue trading by negotiating its debts, such as cutting rent costs with landlords.
It is a common way for struggling businesses to try and stay afloat, with chains such asandhaving previously entered into one.
The Original Factory Shop staff are said to have been briefed on the plans.
The move has placed uncertainty over the discounters portfolio of 187 high street stores, with the outlet previously adding it could lead to “significant” closures and job losses.
It employs about 2,000 people, with a proportion of its 176 head office and warehouse employees understood to be facing redundancy.
Creditors will be asked to vote on the plans at a meeting in mid-May.
It comes just two months after the private equity firm – which recently snapped up‘s high street arm – bought The Original Factory shop.
