Major excessive avenue model with 50 shops set to be taken over by WHSmith’s new homeowners
Investment firm Modella Capital, which snapped up WH Smith’s high street chain earlier this year, is in advanced talks to buy Wynsors World of Shoes, which has around 50 shops across the north of England, Sky News reports.
A major UK shoe brand is set to be taken over – saving all 50 stores in the process. Modella Capital, the investment firm that previously snapped up WH Smith, is reportedly in advanced negotiations to acquire Wynsors World of Shoes, a privately-owned footwear retailer, as it continues its shopping spree for UK high street staples.
According to Sky News, Modella is deep into discussions about purchasing Wynsors, which operates around 50 standalone shops primarily in the north of England.
Insiders from the retail industry have tipped Modella as the most likely buyer of Wynsors, with a deal potentially being sealed before the year’s end . . . although many will hope that the name will not be changed.
Over the past two months, Wynsors has been actively exploring a sale, enlisting the services of accountancy firm RSM to scout for potential buyers.
The shoe retailer, known for its focus on the school shoes segment of the market, has reportedly felt the pinch from increased labour costs introduced in last year’s Budget, as reported by City AM.
This mirrors the struggles faced by many retailers who have had to either freeze hiring or cut costs to cope with the rise in national insurance contributions and the national minimum wage.
If the deal between Modella and Wynsors comes to fruition, the footwear retailer would join a portfolio of brands under Modella’s umbrella. This includes TG Jones (formerly WH Smith’s high street chain), Hobby Craft, and The Original Factory Shop.
Modella secured ownership of WH Smith in a £76m deal this past March, outbidding Alteri investors in an auction process.
Shares in the high street stationery store have taken a significant hit this year, plummeting 42 per cent to date to 686 pence.
The company was also in the running to acquire Poundland, which was eventually sold to fellow specialist retail investor Gordon Brothers over the summer.
Modella chose not to comment when approached by Sky News.
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