The footwear chain is in the process of restructuring which could put 100 jobs at risk, just six months after Wynsors World of Shoes was purchased by investment firm Modella Capital
Footwear retailer Wynsors World of Shoes is undergoing restructuring that could place 100 staff positions at risk, merely six months after the chain was acquired by an investment company.
The investment company, Modella Capital, is reportedly conducting discussions with landlords at 36 of the chain’s premises and informed employees about proposals for a company voluntary arrangement on Tuesday, June 2.
Wynsors CEO Adam Foster allegedly told The Sun: “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.
“Our focus now is on working constructively with our creditors, including landlords and other stakeholders, to allow us to continue serving our customers and providing jobs for colleagues who will stay with the business.”
A company voluntary arrangement is frequently utilised by retailers to reach agreements with landlords and other creditors in a bid to prevent insolvency, reports the Express.
The restructuring is anticipated to feature rent reductions at 36 of the chain’s 47 outlets. Multiple branches and one of Wynsors’ two distribution hubs are expected to shut following negotiations with landlords.
Around 100 employees are likely to face redundancy should the arrangement receive approval.
“This has been an incredibly difficult decision, and I want to acknowledge the impact they will have on those colleagues who will be affected,” Foster said.
The retailer, renowned for their children’s school footwear collection, are predominantly located across northern England.
Modella Capital is recognised for snapping up troubled British high street names. The company purchased both Claire’s and The Original Factory Shop last year.
Modella Capital also acquired WH Smith, which it renamed as TG Jones, with paperwork to creditors revealing that turnover has plummeted.
Most recently the firm has taken over the Flying Tiger chain in a transaction announced last month.
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