Modella Capital is placing more than 100 jobs at risk as it pursues a dramatic restructuring of northern footwear retailer Wynsors, just six months after acquiring the chain. The private equity firm, which also controls hundreds of former WH Smith outlets, has informed employees of plans for a comprehensive overhaul involving a Company Voluntary Arrangement (CVA).
Restructuring Details
Employees were notified of the CVA proposals on Tuesday afternoon. The restructuring could result in rent reductions at 36 of Wynsors' 47 stores, with several locations expected to close permanently. Approximately a quarter of the company's 400-strong workforce is at risk, affecting over 100 positions.
Reasons for the CVA
Wynsors cited "fiscal and regulatory headwinds" and the operational impact of a cyberattack last year as key factors. Chief executive Adam Foster stated: "Regrettably, the severity of the challenges we have faced, ranging from an extremely difficult trading environment to a significant cyber-attack disrupting our core operations, have made this restructuring unavoidable." He added: "This has been an incredibly difficult decision, and I want to acknowledge the impact they will have on those colleagues who will be affected. This CVA is a necessary step to give Wynsors a viable future."
Company Background
Wynsors was founded in Chesterfield in 1956 and operates stores across northern England, focusing on school footwear. Modella Capital has owned the Lancashire-based retailer for only six months and was reportedly considering selling the chain in March.
Modella's Track Record
The Mayfair-headquartered private equity house has a history of acquiring troubled retailers and imposing cost-cutting measures. It attributed weak consumer sentiment and "adverse government fiscal policies" for winding down Original Factory Shop and Claire's Accessories shortly after acquisition. Modella purchased WH Smith's 480 high street outlets for £40 million last year, rebranding them as TG Jones, but admitted these stores are performing worse than before. The firm is preparing to close up to a quarter of those locations in a sweeping restructuring to avoid insolvency.
Recent Acquisitions
Modella's latest purchase is Flying Tiger Copenhagen, a stationery and accessories retailer with approximately 1,000 stores worldwide, including 80 in the UK.
Leadership
Modella was established as Tailer Debtco in 2022 before rebranding in 2023. It is owned by Hay Wain Group, the family office of turnaround specialist Jamie Constable. Chairman Steve Curtis is a prominent retail investment figure, while Joseph Price serves as managing director.
