Job losses loom at shoe seller Wynsors after takeover by TG Jones owner Modella
Investment firm Modella Capital is planning up to 100 job losses at footwear retailer Wynsors.The private equity group, which is best known for buying WH Smith’s High Street arm and re-naming it TG Jones, is considering closing some of Wynsor's 47 shops, as well as shutting one out of two distribution centres.In a statement, Modella said a restructuring at Wynsors was necessary ‘due to a prolonged challenging trading environment across the retail sector’, which has been exacerbated by higher taxes, inflation and a cyber hack last year.The combination of such pressures means that Wynsors, which began as market stalls selling shoes in 1956, is now ‘in an unsustainable position, making decisive action essential.’ Wynsors blamed an 'extremely difficult trading environment' as it confirmed job losses are on the tableThe company is proposing a company voluntary arrangement (CVA), which would see it negotiate rent cuts with 36 of its landlords to avoid insolvency.Although the company did not comment on the number of job losses, Sky News reported that up to 100 are at risk. The reports, which leave its 400-strong workforce in the lurch, come around six months after Modella bought the retailer.The investment group said it will try to find alternative roles in other stores or in other retailers within its portfolio companies for those made redundant.Wynsors' chief executive Adam Foster said: ‘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.‘This has been an incredibly difficult decision, and I want to acknowledge the impact they will have on those colleagues who will be affected.’He said the restructuring was ‘a necessary step to give Wynsors a viable future.’Founded just four years ago, Modella Capital has gained a reputation for buying British retailers and shutting shops.In recent days, Modella Capital has bought Danish retailer Flying Tiger.It is also pressing ahead with closing around a third of the 450-plus shops it bought from WH Smith for £40million last year.AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Job losses loom at shoe seller Wynsors after takeover by TG Jones owner Modella
