Search results for “Modella”

Hobbycraft to close at least nine stores in restructuring plan

23rd April 2025

The owner of Hobbycraft is planning to close at least nine stores as part of a company voluntary arrangement (CVA) set to be launched this week. Modella Capital – the private investment firm which also recently took over WHSmith’s high street arm – could close nearly a quarter of the retailer’s stores under the terms of the restructuring, Sky News has reported. In addition to the nine stores already earmarked for closure, a further 18 could shut their doors if negotiations with landlords for lower rents fall through. A further 97 stores will remain unaffected by the CVA. As well as job losses at the closing stores, it is also expected that a number of roles within the head office and distribution centres could also be cut. Modella Capital is expected to launch the Hobbycraft CVA shortly before it begins a restructuring process at discount chain The Original Factory Shop, which it acquired two months ago. In a statement, a Modella spokesperson said: “Modella Capital is absolutely committed to bricks and mortar retail, at a time when the sector is coming under increasing pressure. “[Modella] understands that high streets provide a vital service to consumers, are an essential source of...

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Investor completes Hobbycraft acquisition

27th August 2024

Specialist retail investor Modella Capital has completed the acquisition of Hobbycraft from Bridgepoint Capital for an undisclosed fee. Bridgepoint – which put the arts and crafts retailer up for sale in February – had doubled the size of Hobbycraft’s estate since its acquisition in 2010. Dominic Jordan, chief executive of Hobbycraft, said: “We are delighted that Modella Capital is the new owner of this great business. Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner. “I would also like to thank Bridgepoint for their support and collaboration over the past 14 years. Hobbycraft has evolved into a leading name in the arts and crafts sector and I am confident that, together with Modella Capital, we have a very bright future ahead of us.” Joseph Price, managing director of Modella Capital, added: “Hobbycraft is a business with fantastic potential, boasting a highly experienced management team, truly passionate store colleagues and real authority in a sector on the high street that continues to grow and is set to do so in the future. “We look forward to accelerating the team’s growth strategy through investment in the physical footprint...

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TGJones owner acquires Flying Tiger Copenhagen

28th May 2026

Modella Capital, the owner of TGJones and Hobbycraft, has acquired variety retailer Flying Tiger Copenhagen. The private equity firm said that it is uniquely placed to support the retailer as it enters a new period of growth, which will include expansion into Canada and El Salvador this summer. Modella Capital also said it is backing Flying Tiger’s existing management team as the retailer looks to open 700 franchise stores by 1930. The acquisition follows a transitional period of ownership by Flying Tiger’s lending banks, during which the business was repositioned as it looked to secure long-term growth. Joseph Price, managing director at Modella Capital, said: “Flying Tiger Copenhagen is a hugely exciting opportunity for Modella Capital. “With its strong retail brand, and a unique product offering that has built a loyal customer base across more than 40 countries, Flying Tiger Copenhagen is a business with tremendous potential. “We are pleased to be investing in its future, and we look forward to working closely with the management team to provide the stability, capital and retail expertise the business needs to fulfil its growth plan.” Jens Aarup Mikkelsen, chief executive at Flying Tiger Copenhagen, added: “Modella Capital brings deep retail expertise and...

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Retail investor on verge of Hobbycraft acquisition

21st August 2024

Hobbycraft is on the verge of being acquired by a specialist retail investor, with a deal potentially being signed within the coming days. Modella Capital is in advanced talks to purchase the arts and crafts retailer from its owner, private equity firm Bridgepoint, Sky News has reported. Modella – whose executives have previously backed chains including Paperchase and Tie Rack – is affiliated with turnaround firm Rcapital, which formerly owned Little Chef. Sky News said it was unclear how much Modella was likely to pay for the retailer, or whether other bidders were waiting if the deal fell through. Modella has also invested in No Ordinary Designer Label, the UK franchise partner of Ted Baker, which collapsed into administration earlier this year. The retailer is closing all of its UK stores this week. Hobbycraft – which was acquired by Bridgepoint in 2010 – trades from over 85 stores in the UK. Earlier this year, the retailer laid out its requirements as it looks to continue expanding into 2025.

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WHSmith name to disappear from high streets after sale

31st March 2025

The WHSmith name is set to disappear from towns and cities across the UK following a sale of its high street division to Modella Capital worth £76m. The retailer’s entire high street estate – which comprises around 480 stores – will move under Modella Capital’s ownership. All of the stores will continue to trade under the WHSmith brand during a transitionary period, before being rebranded as TGJones. WHSmith’s travel division – which makes up 75% of its revenue and 85% of its trading profit – is not included in the sale. Under Modella Capital’s ownership, the high street business will be led by Sean Toal, its current CEO. WHSmith has been a staple on British high streets since the first store was opened on London’s Little Grosvenor Street in 1792. Carl Cowling, group chief executive of WHSmith, said: “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel. “We have a highly successful travel business, operating in fast growing markets in 32 countries and we are constantly innovating to deliver strong returns and meet our customers’ and partners’ needs. Our Travel...

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WHSmith buyer eyes takeover of British footwear retailer

1st December 2025

The recent buyer of WHSmith (now TGJones) is eyeing a takeover of privately-owned footwear retailer Wynsors World of Shoes. Investment firm Modella Capital is reportedly in advanced talks to acquire the retailer, which operates around 50 stores in the north of England, Sky News has reported. Retail industry sources told Sky News that Modella was the likeliest buyer of Wynsors, with a deal potentially being struck before the end of the year. Wynsors has been exploring a sale for the last two months, having appointed accountancy firm RSM to explore interest from prospective bidders. Should a deal be completed, Wynsors will join a number of brands including Hobbycraft and The Original Factory Shop which have been acquired by Modella in recent months. Modella had also emerged as one of the bidders for Poundland during the summer, before the discounter was sold to Gordon Brothers, another retail investor.

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New owner of The Original Factory Shop considers store closures in restructuring plans

18th March 2025

The new owner of The Original Factory Shop (TOFS) is considering closing stores and slashing rents as it draws up plans for a restructuring of the retailer. Modella Capital – which acquired the discount retailer just weeks ago – has called in advisers from Interpath to explore options for TOFS, Sky News has reported. These options include a potential Company Voluntary Arrangement, which could see the closure of underperforming stores and rent reductions on others. Sky News reports that a major distribution centre could also be included in potential proposals for restructuring. TOFS – which was founded in 1969 – trades from around 120 stores in the UK. It was acquired by Duke Street in 2007 before being taken over by Modella Capital – which is one of the two remaining parties in the race for WHSmith’s high street division. Modella Capital is also reportedly pursuing a restructuring of the Hobbycraft chain, which it acquired last summer.

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Investor targeting WHSmith high street takeover eyes Lakeland acquisition

27th March 2025

An investment vehicle which is one of two parties currently in the race to acquire WHSmith’s high street business is eyeing a takeover of kitchenware retailer Lakeland. Modella Capital is among a number of interested parties vying for a stake in the family-owned retailer, Sky News has reported. A takeover would be the latest in a what is becoming an acquisition spree for Modella, which took control of The Original Factory Shop and Hobbycraft over the past eight months. The sales process for Lakeland began in January after the retailer hired advisers from Teneo, and is said to have also attracted the former owner of HMV Hilco. One other party is said to be interested in an acquistion. A Lakeland spokesperson said in January that the retailer was “considering a number of options to ensure a sustainable and long-term capital structure, which builds on our 60-year heritage as one of the UK’s most innovative homeware retailers”. Lakeland is now understood to be seeking new funding worth up to tens of millions of pounds as it faces further costs including the incoming increase to its national insurance bill. The retailer – which was established as Lakeland Plastics in 1964 and is...

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WHSmith completes sale of high street business

30th June 2025

WHSmith has completed the sale of its high street business to Modella Capital. The sale – which was announced in March – comes as the retailer shifts its focus to its more successful travel division. WHSmith said that since the announcement, the future of the high street business had led to a more cautious outlook from stakeholders, as well as a period of softer trading. As a result, Modella Capital sought amendments to the terms of the transaction, with the private equity firm reaching an agreement to pay less than the original price of £76m. The revised sale value terms include an up-front payment of £10m, up to £20m of a deferred consideration in which WHSmith and Modella equally share in the business’ cash flow generation until August 2026, and up to £10m of further proceeds based on certain tax assets within the high street business. Following the sale, the WHSmith name is set to disappear from UK high streets, with the stores being rebranded to TGJones.

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Over 150 Claire’s stores acquired in rescue deal

2nd October 2025

More than 150 Claire’s stores in the UK and Ireland have been acquired by a private equity firm as part of a rescue deal. Modella Capital – which also owns Hobbycraft and TGJones (formerly WHSmiths) – has acquired 156 stores alongside a licence to trade as Claire’s in the UK and Ireland. These have been purchased from Ames Watson, the US-based owner of the brand’s intellectual property. This comes after the jewellery and accessories retailer entered administration in August. The brand has been a staple of UK and Ireland high streets since 1974, but has faced significant challenges in recent years. These include increasing debts such as a £355m repayment due to be repaid in December 2026. Modella said it will now enter a period of negotiations with landlords to determine which of the 156 stores can remain open. Joseph Price, managing director at Modella Capital, said: “As a firm, we strongly believe that this much-loved brand deserves the chance to remain on the High Street in the UK and Ireland. The issues that Claire’s is facing are significant, and we will need to work collaboratively with all interested parties if our proposed rescue plan is to succeed.”

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Claire’s and The Original Factory Shop to be put into administration

6th January 2026

Claire’s and The Original Factory Shop are being put into administration, casting doubt upon the futures of almost 300 stores. Modella Capital, which owns both retailers, said the retailers would enter insolvency proceedings across the UK and Ireland, with the process able to provide them time to find new buyers. Accessories specialist Claire’s and discount retailer The Original Factory Shop operate 154 and 140 stores respectively. Modella Capital acquired Claire’s UK estate and intellectual property in autumn 2025, after the retailer’s previous collapse into administration which saw the closure of over 140 stores. Claire’s has been seeking a buyer since July after its US-based owner filed for bankruptcy. Modella has owned The Original Factory Shop since early last year. The investment firm said: “This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.” “A combination of very weak consumer confidence, highly adverse government fiscal policies and continued cost inflation is causing many established and much-loved businesses to suffer badly,” the group added.

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Up to 150 former WHSmith stores could close in restructuring plans

7th May 2026

Up to 150 former WHSmith high street stores could close as part of a restructuring plan. A spokesperson for private equity firm Modella Capital, which owns the rebranded TGJones stores, said the retailer had faced “highly challenging trading conditions over the past year”. Modella acquired WHSmith’s high street estate last year in a deal worth approximately £40m. The retailer’s travel division and intellectual property was not included. The firm said the challenges were partly due to the “forced” name change to TGJones, saying that the change negatively impacted public awareness of the brand. Other named factors included rising operating costs and recent geopolitical events. The spokesperson added: “The restructuring plan is designed to protect the substantial core of the store estate and create a stronger, more sustainable business that can continue to serve customers for years to come.” This comes after another Claire’s, another Modella Capital-owned brand, closed 154 stores last month after ceasing trading.

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TGJones owner emerges as potential buyer for Poundland

27th August 2026

Modella Capital, the private equity firm that acquired WHSmith’s high street business in 2025 before its rebrand to TGJones, has reportedly emerged as a potential buyer of discount retailer Poundland. Industry sources told Sky News that although Modella has not yet made an official bid for Poundland, the group was a “logical buyer” of the retailer, having bought its Polish sister company Dealz several months ago. Last week, it was reported that Gordon Brothers, which acquired Poundland for one euro last year, had appointed Alvarez & Marshall to oversee an auction of the retailer’s business. Poundland’s sale was part of a restructuring process that saw the closure of around 200 stores, with the chain now operating from around 600 locations. The addition of Poundland to Modella Capital’s business would be a continuation of the group’s strategy, which has seen it acquire retailers including Flying Tiger Copenhagen, Hobbycraft, and Claire’s in recent years.

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Hobbycraft owner explores restructuring seven months after acquisition

13th March 2025

The owner of Hobbycraft is exploring a potential restructuring process of the arts and crafts retailer, just seven months after its acquisition. Modella Capital – which is one of the remaining bidders for WHSmith’s high street estate – has drafted in advisers from FRP to examine its options, Sky News has reported. One such option is a company voluntary arrangement, which are often used to facilitate store closures and rent reductions from landlords. Hobbycraft trades from 124 stores in the UK. Sources close to the process told Sky News that FRP’s work was at a very early stage and that no decisions had been made about any restructuring processes. Modella acquired Hobbycraft from private equity firm Bridgepoint last summer after the retailer was put on sale in February 2024. The firm’s executives have also previously backed retailers including Paperchase and Tie Rack, and last month acquired The Original Factory Shop.

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WHSmith stores safe from mass closures for 12 months

6th May 2025

The new owner of WHSmith’s high street business has been restricted from carrying out mass store closures for at least 12 months. Modella Capital acquired the retailer’s high street business earlier this year for £76m, however under the terms of the transaction the group is prohibited from initiating a company voluntary arrangement or undertaking mass closures for the first year of its ownership. WHSmith’s travel division – which makes up 75% of its revenue and 85% of its trading profit – was not included in the sale. The retailer’s entire high street estate, comprising around 480 stores, will continue to trade under the WHSmith brand during a transitionary period, before being rebranded as TGJones. WHSmith has been a staple on British high streets since the first store was opened on London’s Little Grosvenor Street in 1792. This comes as Modella Capital also plans to close nine Hobbycraft stores as part of a company voluntary arrangement. A further 18 could also shut their doors if negotiations with landlords for lower rents fall through.

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Hobbycraft owner mulls sale

23rd February 2026

The owner of Hobbycraft is considering a sale of the business after receiving an offer from a potential buyer. Sky News has reported that private equity group Modella Capital is preparing to appoint advisers to lead on a sale. The firm acquired the arts and crafts retailer from Bridgepoint in 2024. Modella Capital also owns the TGJones chain of stores after acquiring WH Smith’s high street business in 2025. The group has also acquired and restructured Claire’s and The Original Factory Shop over the last 12 months, both of which were subsequently put into administration. Last year, the retailer closed a number of stores as part of a restructuring plan.

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French jewellery entrepreneur eyes rescue deal for Claire’s UK

17th March 2026

French jewellery entrepreneur Julien Jarjoura is eyeing a potential rescue deal for the UK operations of Claire’s, following the retailer’s second collapse into administration in less than a year. Jarjoura – who has already acquired the accessories retailer’s European businesses over the last year – is reportedly in discussions with landlords and administrators about a deal which could save a number of stores and jobs in the UK. Claire’s currently operates 154 stores nationwide after a raft of closures. The retailer was placed into administration alongside The Original Factory Shop in January by their owner, private equity firm Modella Capital. Modella originally acquired Claire’s in autumn 2025, after the retailer’s previous collapse into administration saw the closure of over 140 stores. Jarjoura said he could “not bear the idea of letting go a business that was worth saving”. “I was in London a few weeks ago and landlords have responded in a really positive way”, he added. Within the retailer’s European estate, Jarjoura has introduced new initiatives such as lower prices, a reduction on the reliance on heavy promotional activity, and refreshed store formats. It is understood that he would consider price reductions of roughly a third in the UK...

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TGJones under threat of insolvency following court ruling delay

30th June 2026

WHSmith’s former high street business, now trading as TGJones, is under threat of insolvency after a High Court ruling delayed a decision on the retailer’s proposed restructuring plans. The retailer – which was acquired by private equity firm Modella Capital last year – said it may struggle to meet millions of pounds’ worth of payments due this week without approval for its rescue plan, The Telegraph has reported. Mr Justice Hildeyard said more time would be required to consider the case, putting the futures of 480 stores at risk. Under the proposed plan, TGJones is expected to close up to 150 stores. Modella previously said the restructuring plan is required to protect the core of the store estate and build a more sustainable business. The firm also said it plans to invest £35m into the retailer, introducing rent reductions and changes to supplier repayment terms. WHSmith offloaded its high street business last year to focus on its more profitable travel division, which still operates under the company’s original name. The remaining shops’ rebrand to TGJones meant that the WHSmith name disappeared from UK high streets after almost 200 years.

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TGJones to close up to 150 former WHSmiths stores after rescue deal approval

1st July 2026

TGJones is set to close up to 150 former WHSmith high street stores after its proposed restructuring deal was approved by the High Court. In addition, the retailer – which is owned by Modella Capital – will also seek to slash rents on its remaining store estate. Under the terms of the restructuring, some 120 landlords will receive no rent for up to three years, while rent will be cut at hundreds of other stores by between 15% and 75%. TGJones currently operates 451 stores nationwide, employing over 4,700 workers. WHSmith offloaded its high street business last year to focus on its more profitable travel division, which still operates under the company’s original name. The remaining shops’ rebrand to TGJones meant that the WHSmith name disappeared from UK high streets after almost 200 years. Modella previously said the restructuring plan is required to protect the core of the store estate and build a more sustainable business. The firm also said it plans to invest £35m into the retailer, introducing rent reductions and changes to supplier repayment terms. The group said some of the problems facing the business, including a cash shortfall of nearly £8m, were due to serious underinvestment in stores...

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Ted Baker set for expansion after securing funding

1st December 2023

Ted Baker is looking to grow its presence after its retail and commerce operator secured a long-term lending facility. The fashion retailer’s operator, No Ordinary Design Limited – part of the AARC Group – secured the facility from asset-based lender Secure Trust Commercial Finance. No Ordinary Design Limited said the facility will provide a “platform for growth” for Ted Baker. Last year, Ted Baker was acquired by US-based conglomerate Authentic Brands for £211m. In June, AARC Group – which is based in The Netherlands – became the operator of Ted Baker’s stores, concessions, and website in the UK and Europe. No Ordinary Designer Label Limited and AARC Group CEO Carlos Radulovitch said: “After securing the licence to Ted Baker operations in the UK & Europe, we’re focused on revitalising the business to its full potential and we are pleased to have secured a partnership with retail specialists Secure Trust and Modella to join us on this journey to growth. “We are optimistic about Ted Baker’s bright future, working collaboratively with Authentic and the wider network of Ted Baker licensees.” Earlier this year, Authentic Brands secured a £394.1m investment from global growth equity firm General Atlantic.

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