Investment firm Modella Capital, owner of TGJones, Hobbycraft, and most recently Flying Tiger Copenhagen, is plotting rent and job cuts at a footwear retailer it bought late last year.
Staff at footwear chain Wynsors World of Shoes have reportedly been told of plans for a company voluntary agreement (CVA) today (June 2), Sky News reported.
The investment firm is talking to landlords about a restructure, with this expected to involve rent cuts at 36 of Wynsors’ 47 stores. It comes six months after Modella bought the company.
Modella has also recently purchased all of Flying Tiger Copenhagen’s 1,100 stores across 44 countries.
Retail Week also first reported that Modella has warned creditors to back its restructuring proposals for TGJones, formerly WHSmith, or risk it collapsing into insolvency by the end of July.
Over 100 stores are set to close if a restructuring plan is approved by a court this month.
On Wynsors, sources told Sky News that a number of the 36 shops lined up for rent cuts, as well as two distribution centres, are expected to close following landlord talks.
Around 400 people work for the retailer, which is located in the north of England. If the CVA is approved, around 100 people could lose their jobs.
Modella also bought The Original Factory Shop (TOFS) and Claire’s last year, but both collapsed into insolvency proceedings. TOFS has stopped trading, while around 50 of Claire’s stores are in the process of being reopened under new ownership.
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