Preferred shareholders of discount furniture and non-food retailer Original Factory Shop have proposed chopping in half the interest on rolled up dividend payments.

Original Factory Shop has some £15m of preference shares which are due for redemption at the end of 2017. The proposed change means rolled up interest over the period will total £4.8m, instead of £8.7m.

Original Factory Shop owner Duke Street Capital holds the majority of the preferred stock, with other holders of this class of shares including the retailer’s former CEO Angela Spindler, who left the retailer to join N Brown in 2013.

Documents filed at Companies House — signed by almost all stockholders — show bosses have cut the rate from 15.5 per cent a year to 8.7 per cent, starting from the 1st April last year.