Abstract: A retaining system embodying a method and apparatus for adjustably retaining hand tools in any position on a ferromagnetic surface, such as on the exterior of heavy equipment or in a truck bed is provided. The retaining system may embody an elongated channel member and a tool retainer. The tool retainer may include a pair of clip flanges extending generally perpendicular from a base. The pair of clip flanges may form a tension clip for securing handles of the hand tools within a receptive cavity. The base may provide a magnet for removably attaching to the ferromagnetic surface. Moreover, the base may provide interlocking projections along its periphery so that two or more tool retainer may be interlocked together when stacked one on top of another. Alternatively, the tool holders may be slidably secured within the channel member, when nearby attachment surfaces are made of non-ferromagnetic material.