Modella Capital has continued its retail buying spree with a bid to snap up Polish discounter Dealz.
The owner of TGJones, the former high street business of WHSmith, is expanding its European retail footprint after it emerged as the mystery buyer of the Polish discounter, which was announced by Pepco Group this morning, according to Sky News.
Dealz has over 340 stores across Poland, employing about 3,500 people. In a statement, Pepco said it had agreed to see the business for a “nominal” sum and provide £20m of financing to the buyer.
It comes a year after Pepco sold Poundland to Gordon Brothers, and a week after Modella snapped up Flying Tiger Copenhagen. Modella reached a deal to buy all of Flying Tiger’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.
Modella Capital is also planning to launch a company voluntary arrangement for footwear chain Wynsors World of Shoes, which is expected to lead to store closures and job cuts.
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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