Modella Capital, a relatively unknown investment firm, has found itself at the center of attention as it faces scrutiny over its handling of troubled retailers Claire's and The Original Factory Shop. The UK-based firm, which was set up four years ago by a group of restructuring professionals, has rapidly expanded its portfolio to include businesses with around 900 shops and 10,000 employees.
In recent months, Modella has taken control of struggling retailers Hobbycraft and WH Smith, also now rebranded as TG Jones. The firm's approach to turnaround strategies has been marked by swift and decisive action, including the use of company voluntary arrangements (CVAs) to reduce rents and close underperforming stores. This approach has earned Modella a reputation for being willing to take risks on businesses with limited potential buyers.
However, the firm's involvement in Claire's and The Original Factory Shop may prove to be its most high-profile challenge yet. With 2,550 jobs at risk, the potential collapse of both retailers has raised concerns about Modella's ability to turn around these struggling businesses. Despite initial promises to keep stores open, Modella is now expected to step away from Claire's in the UK, with Ames Watson, the US owner of the brand, reportedly hunting for new licensees.
Industry insiders are questioning whether Modella has the expertise to navigate the complexities of retail turnaround strategies. "I'm not sure they have got many people who understand the trading of businesses," said one restructuring industry expert. The firm's reliance on a mix of its own funding and specialist lenders may also be a concern, as the UK high street continues to face significant challenges.
Modella Capital is part of the Hay Wain group, controlled by Jamie Constable, a former turnaround expert and accountant. While the firm has gained a reputation for being proactive in acquiring struggling retailers, its ability to execute on these deals remains a subject of debate. As Modella looks to expand its portfolio further, it will be watching closely to see whether it can avoid replicating the mistakes that have led to the collapse of Claire's and The Original Factory Shop.
In recent months, Modella has taken control of struggling retailers Hobbycraft and WH Smith, also now rebranded as TG Jones. The firm's approach to turnaround strategies has been marked by swift and decisive action, including the use of company voluntary arrangements (CVAs) to reduce rents and close underperforming stores. This approach has earned Modella a reputation for being willing to take risks on businesses with limited potential buyers.
However, the firm's involvement in Claire's and The Original Factory Shop may prove to be its most high-profile challenge yet. With 2,550 jobs at risk, the potential collapse of both retailers has raised concerns about Modella's ability to turn around these struggling businesses. Despite initial promises to keep stores open, Modella is now expected to step away from Claire's in the UK, with Ames Watson, the US owner of the brand, reportedly hunting for new licensees.
Industry insiders are questioning whether Modella has the expertise to navigate the complexities of retail turnaround strategies. "I'm not sure they have got many people who understand the trading of businesses," said one restructuring industry expert. The firm's reliance on a mix of its own funding and specialist lenders may also be a concern, as the UK high street continues to face significant challenges.
Modella Capital is part of the Hay Wain group, controlled by Jamie Constable, a former turnaround expert and accountant. While the firm has gained a reputation for being proactive in acquiring struggling retailers, its ability to execute on these deals remains a subject of debate. As Modella looks to expand its portfolio further, it will be watching closely to see whether it can avoid replicating the mistakes that have led to the collapse of Claire's and The Original Factory Shop.
- there's gotta be more to this than meets the eye. Modella Capital is like a vampire, sucking the life outta struggling retailers and leaving them to pick up the pieces 
. They're always talking about "turning it around" but what really goes on behind closed doors? Is Jamie Constable just trying to line his pockets with other people's money? 
And those 2,550 jobs at risk... is that just a PR stunt to distract us from the real issue? 
I'm telling you, there's a conspiracy here, and it's not just about retail turnaround strategies 
. I mean, who takes on 10k employees in one go? They must be counting on some magic 
. But seriously, they need to figure out what they're doing if they want to turn these businesses around 
. And btw, why not just let the companies sort themselves out instead of using CVAs as a last resort? 
. And let's not forget, the UK high street is already struggling, it's not like Modella can just magic all these businesses back to health.
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. I'm not sure if their approach is going to pay off, though... I mean, 900 shops and 10,000 employees is a lot of weight to put on one firm's shoulders 
. They might be able to turn things around with Claire's and The Original Factory Shop, but I'd love to see them make it happen without too many hiccups 
. And what's up with this CVA thingy? It sounds like they're just throwing money at the problem instead of really fixing it 
. Industry experts are saying they might not have the expertise to navigate these complex turnaround strategies #RetailTurnaroundStrategies #InvestmentFirmProblems.
. I'm not sure Modella has what it takes to execute on these deals without causing more problems #ModellaCapitalProblems #InvestmentFirmFail.
. Fingers crossed for Claire's and The Original Factory Shop employees who might be losing their jobs 
. It's one thing to be proactive, but Modella needs to be smart about it too 
. Taking on 2,550 jobs is a huge risk, and if they don't pull it off, it'll reflect badly on the whole firm 
. They're just stepping away from the UK now? It feels like they're losing control of the situation 
. Industry experts are right to question whether Modella has what it takes to navigate retail turnaround strategies - we'll be watching closely to see if they can get it right 
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. But what if they can't? I mean, 2,550 jobs are on the line here, that's a big deal 
. The UK high street needs some real solutions, not just band-aids 
. The question now is whether Modella Capital will be able to learn from its mistakes and become wiser 
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. Just because someone has done something before doesn't mean they can do it again. We need to appreciate the value of humility and being willing to say "I don't know" 
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They need to be super careful and figure out what they're doing before expanding further 
. I think it's crazy that they thought they could just swoop in and save Claire's & The Original Factory Shop like that 
. Industry experts are saying they might not have the expertise to pull off these turnarounds, which makes me super nervous 
But at the same time, you feel for them because they're just trying to make a buck in a crazy market. It's like we're all just trying to survive and thrive in this wild world we live in...
. I mean, using CVAs to close stores? That's not exactly a silver bullet 
. And now Claire's is on its last legs 
... I'm starting to think Modella might be biting off more than they can chew 
... wish 'em luck!
. And now, Claire's is on the block again... what's the point of even trying to turn that business around? It's like throwing good money after bad 
company voluntary arrangements... it sounds like some fancy law stuff. but at the end of the day, they're trying to get rid of underperforming stores 
"they don't have people who understand trading businesses" 
️ they're trying to overlap different business areas, but it's not working out 
