Modella Capital
This coverage examines Modella Capital’s investments and strategic activity within the UK retail sector. Reporting focuses on its acquisitions of established retail brands—including Hobbycraft, The Original Factory Shop, Crafter’s Companion, and WHSmith’s high street division (now rebranded as TGJones)—as well as its approach to turnaround strategies, store portfolio optimisation, and leadership transitions. These insights are tailored for retail executives, investors, and professionals monitoring private equity’s role in shaping the future of UK high street and multichannel retail.
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Apr- 2025 -22 AprilHigh Street
New Original Factory Shop owner eyes major rent cuts as part of CVA
The Original Factory Shop (TOFS) landlords could face a package of major rent cuts as its new owner aims to finalise plans for a CVA for the group, with potential store closure also featuring as part of the move. According to Sky News, Modella Capital is now preparing to unveil a…
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14 AprilHigh Street
Hilco closes in on Lakeland deal
Family-owned homeware retailer Lakeland is close to being acquired by high-street investment firm Hilco Capital, according to reports from Sky News. Hilco, which has previously backed retailers including HMV and Superdry, could agree a deal in the coming days, according to insiders. If confirmed, the deal would follow months of…
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Mar- 2025 -28 MarchNews-In-Brief
Today’s news in brief-28/3/25
WHSmith has agreed to sell its high street retail arm to Modella Capital in a £76m deal, marking a significant shift for the historic brand. The acquisition includes around 480 stores across the UK, which will be rebranded as TGJones. WHSmith will retain its travel and international operations, including stores…
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28 MarchHigh Street
WHSmith agrees sale of high street arm to Modella Capital in £76m deal
Modella Capital has announced that it has acquired the UK high street operations of WHSmith, business based on an enterprise value of £76m. The acquisition covers around 480 stores on high streets, shopping centres and retail parks across the UK. As part of the deal, the high street stores will…
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27 MarchNews-In-Brief
Today’s news in brief-27/3/25
Next has reported record pre-tax profits of £1bn for the year to January 2025, marking a 10.1% increase, and has raised its full-year profit guidance by £20m to £1.06bn. The retailer attributed its strong performance to acquisitions like Reiss and FatFace, with total group sales rising 8.2% to £6.3bn. Online…
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27 MarchDIY
Lakeland becomes latest bid target for Modella Capital
Homewares retailer Lakeland has become the latest takeover target of retail investor firm Modella Capital, Sky News has revealed. The investment firm, which owns Hobbycraft and The Original Factory Shop, is among a small number of parties trying to acquire a controlling stake in Lakeland. According to retail industry sources,…
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19 MarchHigh Street
New TOFS owner eyes potential CVA and store closures
Modella Capital, the owner of The Original Factory Shop (TOFS), is reportedly working with Interpath Advisory on a potential company voluntary arrangement, according to Sky News. Having acquired the retailer four weeks ago with no remaining bank debt, Modella is seeking to restructure the business and is currently “exploring options”. …
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13 MarchNews-In-Brief
Today’s news in brief-13/3/25
John Lewis Partnership has announced that its staff will not receive a bonus for the third consecutive year, despite tripling its full-year profits from £42m to £126m. Instead, the company is investing £114m into staff pay, building on a £116m increase in 2024, and up to £600m in business transformation.…
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13 MarchHigh Street
Hobbycraft owner eyes potential restructuring
Hobbycraft owner, Modella Capital, has reportedly enlisted advisers from FRP to explore a restructuring at the crafts chain, Sky News has reported. Modella, which acquired the retailer seven months ago, is examining its options such as a company voluntary arrangement (CVA). CVAs, which are frequently used to facilitate store closures…
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7 MarchFeatures
WHSmith’s high street exit: what it means for the retail industry
After more than 230 years as a staple of British high streets, WHSmith is considering selling off its entire high street business. With around 500 stores facing an uncertain future, the company is shifting its focus to travel retail — airports, railway stations, and motorway service areas — where it…
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