WH Smith bidder Modella mulls Hobbycraft restructuring
Sky News has learnt that Modella Capital has drafted in advisers from FRP, the professional services firm, to examine potential options including a company voluntary arrangement (CVA).
CVAs - a widely used tool in the retail and hospitality sectors in recent years - are frequently utilised to facilitate store closures and rent cuts from landlords.
Sources close to the Hobbycraft process said on Wednesday that FRP's work was at a very early stage, and that no decisions about restructuring measures had been taken.
It remained possible that no substantive action would be implemented, they added.
A spokesman for Modella said that Hobbycraft traded from 124 stores and had a workforce numbering roughly 2,400 people.
Modella, which specialises in buying challenged retailers, is vying with rival firm Alteri to buy WH Smith's entire high street estate, with a deal expected in the coming months.
The firm's executives have backed chains including Paperchase and Tie Rack, and the firm last month acquired The Original Factory Shop.
Modella bought Hobbycraft, which was founded in 1995, from the private equity firm Bridgepoint last summer.
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Scotsman
2 days ago
- Scotsman
Sadness as famous name departs UK high streets
Yet that stalwart of British shopping, WHSmith, is disappearing from the nation's high streets for good. The stationery giant agreed earlier this year to sell its high street shops to the Hobbycraft owner, Modella Capital. The new owner is taking over around 480 stores with 5,000 staff but is rebranding the high street chain as TGJones - a name it said has the same 'sense of family' as WHSmith. WHSmith stores will continue to operate under the traditional name at airports and railway stores across the UK and abroad. Posting on Instagram on June 30, WHSmith said: 'After 200 years, today we say goodbye to our high street business. 'We're proud to have been a part of the UK high street, working alongside many fantastic colleagues. 'But today, we're a global travel retailer who serves customers on the go from stores across the world. So now is the right time for the high street business to move forward under new owners. 'A massive thank you to all our customers and colleagues for your support over the years. See you on your next journey soon! 'For all your books, stationery and gifting needs, make sure you follow and head to your nearest @tgjonesuk.' Customers have reacted to the news with great sadness. One person wrote: 'Thank you WHSmith for keeping me stocked up with school supplies as a child and books as an adult. You will be greatly missed!' Another person commented: 'It's a sad day. WHSmith played a big part of my childhood and getting my favourite magazines such as Jackie, Just Seventeen and Smash Hits. And a third person said: 'This is so sad! WHSmith was my window to another world! I would get all my mags from here, even recently before the one in Wolverhampton train station closed.' But another person pointed out that WHSmith had sold its high street stores 'whilst you retain the arm at airports and stations that charges £3 for a bar of chocolate that costs 80p everywhere else'. WHSmith was founded in 1792, with Henry Walton Smith and his wife Anna opening the first shop on Little Grosvenor Street, in London. The first travel outlet opened at London's Euston railway station in 1848, and the firm now has more than 1,700 stores across more than 30 countries. These nostalgic photos look back WHSmith over the years in the UK, from early black and white photos to pictures of celebrity book signings and customers queueing for the latest Harry Potter books during the noughties. What are your memories of WHSmith and what do you think of another famous name disappearing from the UK's high streets? Let us know in the comments section. 1 . 80s computer A young boy looking at Acorn Electron computer and monitor in a WHSmith shop in Waterloo, London, in December 1984 | Getty Images Photo: Terry Disney/Daily Express/Hulton Archive Photo Sales 2 . 1920s WH Smith & Sons, Isle of Wight, in around the 1920s | Getty Images Photo: Kirk and Sons of Cowes/Heritage Images Photo Sales 3 . Book signing Excited fans wait in the queue for Katie Price at her book signing at WHSmith in Lancaster | National World Photo: Garth Hamer Photo Sales 4 . Trevor Brooking The England and West Ham footballer Trevor Brooking signs books at WHSmith in Ilford in October 1981 | Getty Images Photo: Steve Rapport Photo Sales
Scotsman
2 days ago
- Scotsman
Sadness as famous name departs UK high streets
Yet that stalwart of British shopping, WHSmith, is disappearing from the nation's high streets for good. The stationery giant agreed earlier this year to sell its high street shops to the Hobbycraft owner, Modella Capital. The new owner is taking over around 480 stores with 5,000 staff but is rebranding the high street chain as TGJones - a name it said has the same 'sense of family' as WHSmith. WHSmith stores will continue to operate under the traditional name at airports and railway stores across the UK and abroad. Posting on Instagram on June 30, WHSmith said: 'After 200 years, today we say goodbye to our high street business. 'We're proud to have been a part of the UK high street, working alongside many fantastic colleagues. 'But today, we're a global travel retailer who serves customers on the go from stores across the world. So now is the right time for the high street business to move forward under new owners. 'A massive thank you to all our customers and colleagues for your support over the years. See you on your next journey soon! 'For all your books, stationery and gifting needs, make sure you follow and head to your nearest @tgjonesuk.' Customers have reacted to the news with great sadness. One person wrote: 'Thank you WHSmith for keeping me stocked up with school supplies as a child and books as an adult. You will be greatly missed!' Another person commented: 'It's a sad day. WHSmith played a big part of my childhood and getting my favourite magazines such as Jackie, Just Seventeen and Smash Hits. And a third person said: 'This is so sad! WHSmith was my window to another world! I would get all my mags from here, even recently before the one in Wolverhampton train station closed.' But another person pointed out that WHSmith had sold its high street stores 'whilst you retain the arm at airports and stations that charges £3 for a bar of chocolate that costs 80p everywhere else'. WHSmith was founded in 1792, with Henry Walton Smith and his wife Anna opening the first shop on Little Grosvenor Street, in London. The first travel outlet opened at London's Euston railway station in 1848, and the firm now has more than 1,700 stores across more than 30 countries. These nostalgic photos look back WHSmith over the years in the UK, from early black and white photos to pictures of celebrity book signings and customers queueing for the latest Harry Potter books during the noughties. What are your memories of WHSmith and what do you think of another famous name disappearing from the UK's high streets? Let us know in the comments section. 1 . 80s computer A young boy looking at Acorn Electron computer and monitor in a WHSmith shop in Waterloo, London, in December 1984 | Getty Images Photo: Terry Disney/Daily Express/Hulton Archive Photo Sales 2 . 1920s WH Smith & Sons, Isle of Wight, in around the 1920s | Getty Images Photo: Kirk and Sons of Cowes/Heritage Images Photo Sales 3 . Book signing Excited fans wait in the queue for Katie Price at her book signing at WHSmith in Lancaster | National World Photo: Garth Hamer Photo Sales 4 . Trevor Brooking The England and West Ham footballer Trevor Brooking signs books at WHSmith in Ilford in October 1981 | Getty Images Photo: Steve Rapport Photo Sales
Fashion United
5 days ago
- Fashion United
From New Look to Select Fashion: Inside the retail collapse threatening the UK high street
The UK retail landscape continues to face mounting challenges. Amid rising operational costs, the long-tail impact of the pandemic and ongoing supply chain disruptions, many businesses are navigating an increasingly volatile environment. An uncertain outlook remains for a significant portion of the sector – and the country is on track to see a record number of store closures in 2025. According to the Centre for Retail Research, an estimated 17,349 stores are expected to shut their doors this year, surpassing levels recorded in 2022. The rise in business rates under the current government – including higher National Insurance contributions and an increase in the minimum wage – has emerged as a core concern for retailers. Added to this is intensifying competition from digital-first, low-cost players such as Shein and Boohoo. While several mid-market fashion retailers are actively responding to these challenges, others remain in recovery — and some have already exited the market. The following offers a snapshot of how UK retailers are faring amid ongoing pressures. New Look New Look's journey in recent years has been a one of twists and turns. The retailer filed for a Company Voluntary Arrangement (CVA) in 2018 amid declining performance, secured a capital raise in the following year and, in 2020, found itself at risk of administration in the wake of the pandemic. Despite refinancing schemes, digital innovations and investments into specific retail networks, trouble has continued to follow New Look into the present year, during which reports have emerged of accelerated store closures and job losses. By February, the retailer confirmed the liquidation of its Irish business, with 26 stores in the region set to close. This already followed the closure of 12 stores across England, Scotland and Wales earlier in the year, prompted by changes to business rates in the UK, including an increase on National Insurance. The latest speculation is that New Look could be eyeing a sale of the business, with a report in June suggesting the retailer had appointed advisors to review strategic options. River Island In June, Sky News reported that River Island was drawing up a rescue strategy, the details of which became clearer later in the month, when the retailer confirmed plans to close 33 of its 230 UK stores. Rent reductions have also been proposed across 71 further locations, subject to a creditor vote scheduled for August 4, with a court decision to follow later. In its latest financial report, River Island posted a loss of 33.2 million pounds in 2023, following a 19 percent drop in sales. In the filing, the company cited 'pressures of a highly competitive and changing retail environment combined with increased economic uncertainty' as key business risks. Supply chain disruptions and labour price increases were also noted. Claire's For Claire's, 2023 was a year that showed promise. After filing for bankruptcy in 2018, the teen-focused accessories retailer seemed to be getting back on its feet, refreshing its brand identity, partnering with large-scale retailers on concessions and committing to new stores in key regions. Despite its efforts, the UK arm of Claire's fell into the red, according to financials for the year ended March 2024, racking up 25 million pounds in losses. Now, in the current year, its future is uncertain. In late June, reports began circulating that Claire's was eyeing a sale of its store networks in North America and Europe. The company, currently owned by a consortium of investment firms, is facing a 480 million dollar loan repayment, due in December 2026, which has been cited as the reason for the alleged review. Later in July, additional reports hinted at the possibility of a major geographical break up of its business. 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Days after the firm's acquisition, Poundland confirmed the closure of up to 150 stores as part of a court-sanctioned restructuring, with 650 to 700 UK stores expected to be retained. Further shifts under Gordon Brothers' 80 million pound proposed turnaround plan include the whittling down of its distribution centre network and a refocus on clothing and general merchandise. The plan is currently subject to court approval and only impacts creditors in the UK. Poundland's operations in the Republic of Ireland and Isle of Man, where it trades under Dealz, are covered by the turnaround, nor are its trade suppliers in the UK or ROI. A court timetable is expected to conclude in late summer. Beales Storied department store chain Beales had struggled to recover after falling into administration in January 2020. Shortly after, it closed 22 of its remaining 23 branches, with only one, its location in Poole, remaining under the guidance of New Start 2020 Limited. In 2021, additional stores in Peterborough and Southport were also reintroduced, however, these locations ultimately closed and, by September 2024, its Poole store was the last standing. The lifespan of this site was also not to be much longer. It eventually closed in May 2025, ending Beales' 140 years of trading. Select Fashion Select Fashion entered its second administration since 2019 earlier this year, citing the cost-of-living crisis, wage pressure and tax increases as the primary causes. The latest filing came shortly after the company filed for a CVA yet, as difficulties escalated, it was forced to appoint administrators to assess all options for the business. As a result, the company closed 35 of its 83 stores, with those remaining reportedly still operationally as the firm assesses the situation. Employees at the shuttered stores were said to have been left without pay, with those impacted advised to apply for the government's Redundancy Payment Scheme. Following store closures, a winding up procedure was reportedly triggered in March 2025. The Original Factory Shop The Original Factory Shop (TOFS) slipped into a loss in 2023 and, after struggling to regain ground, was put up for sale by its former owner Duke Street. Private equity firm Modella Capital stepped in to acquire the company's 180 stores and, weeks later, enacted a restructuring plan under newly appointed advisors Interpath. In April, it was announced that the retailer had launched a CVA, with plans to renegotiate the rents of around 88 of its locations. Such plans were then confirmed in June, with closures confirmed for branches in Pembrokeshire, Perth, Dorset and Cumbria, among other locations, many of which shuttered in July. Winfields Outdoors Winfields Outdoors' financial deterioration seemingly began in 2023, when it swung to a pre-tax loss of one million pounds as revenue dropped nearly 9 percent. Little was shared about the company's efforts to turn such performance around, however, in March 2025, it filed a Notice of Intention to Appoint Administrators, formally signalling financial challenges. Winfields moved to close all of its eight stores before entering administration under Cowgill in April. Its website later displayed the message that it had ceased trading as of April 3, however, the company found itself being accused of cancelling or not fulfilling customer orders, or delaying refunds.
