Modella Capital, a relatively new investment firm, has been thrust into the spotlight due to its involvement with two struggling retailers, Claire's and The Original Factory Shop. As part of a recent shopping spree, Modella Capital acquired both chains in the past year, putting approximately 2,550 jobs at risk. This unexpected move has highlighted the company's ability to step in as a potential savior for troubled businesses.
Founded four years ago by restructuring professionals, Modella Capital has gained notoriety for its rapid and hard-nosed approach to restructuring, which involves putting struggling retailers through an insolvency procedure known as a company voluntary arrangement (CVA). The firm's previous acquisitions include Hobbycraft, where 18 stores were closed within nine months of purchase, resulting in the loss of 600 jobs.
Modella Capital's decision to buy Claire's and The Original Factory Shop was likely driven by the desire to capitalize on potential profits from stock clearance and reduced rent payments. However, despite the company's optimistic outlook, Modella's returns on investment are reportedly not strong, with debts expected to be repaid in full only partially.
In a move that has left many industry experts bewildered, Modella Capital has chosen to step away from Claire's, leaving hundreds of jobs at risk. This decision is attributed to the retailer's inability to compete with other low-cost online specialists and fast fashion brands. The firm's exit also raises concerns about the future of TG Jones, which Modella had previously agreed to acquire.
The investment firm relies on a mix of its own funding and support from specialist lenders such as Secure Trust Bank and Aurelius. Despite facing criticism for not having sufficient expertise in trading businesses, Modella Capital claims that it is committed to acquiring and turning around retailers with the aim of returning them to growth while preserving jobs and contributing to local communities.
As the retail landscape continues to evolve, Modella Capital's aggressive approach has sparked debate among industry experts. While some praise the firm's willingness to take risks on struggling businesses, others question its ability to succeed in a highly challenging market.
Founded four years ago by restructuring professionals, Modella Capital has gained notoriety for its rapid and hard-nosed approach to restructuring, which involves putting struggling retailers through an insolvency procedure known as a company voluntary arrangement (CVA). The firm's previous acquisitions include Hobbycraft, where 18 stores were closed within nine months of purchase, resulting in the loss of 600 jobs.
Modella Capital's decision to buy Claire's and The Original Factory Shop was likely driven by the desire to capitalize on potential profits from stock clearance and reduced rent payments. However, despite the company's optimistic outlook, Modella's returns on investment are reportedly not strong, with debts expected to be repaid in full only partially.
In a move that has left many industry experts bewildered, Modella Capital has chosen to step away from Claire's, leaving hundreds of jobs at risk. This decision is attributed to the retailer's inability to compete with other low-cost online specialists and fast fashion brands. The firm's exit also raises concerns about the future of TG Jones, which Modella had previously agreed to acquire.
The investment firm relies on a mix of its own funding and support from specialist lenders such as Secure Trust Bank and Aurelius. Despite facing criticism for not having sufficient expertise in trading businesses, Modella Capital claims that it is committed to acquiring and turning around retailers with the aim of returning them to growth while preserving jobs and contributing to local communities.
As the retail landscape continues to evolve, Modella Capital's aggressive approach has sparked debate among industry experts. While some praise the firm's willingness to take risks on struggling businesses, others question its ability to succeed in a highly challenging market.
It's like we're trying to patch up a broken wheel with Band-Aids instead of actually fixing the wheel itself. Modella Capital's approach seems to be just throwing money at problems, hoping to paper over them long enough for things to somehow get better on their own. But what if that's not how it works? What if we need real change, not just a quick fix? 
they claim they want to turn around these businesses and contribute to local communities, but it sounds like just another money grab to me 
. need to see more info on this one before i can make up my mind...
. It's like they just gave up on the company without even trying to make it work. And what about TG Jones? They're still stuck in limbo 
. I'm not buying that it was just a matter of Claire's being unable to compete with online brands... something fishy is going on here 
. And have you noticed how many deals Modella makes with those specialist lenders like Secure Trust Bank and Aurelius? It's all a bit too convenient 
I mean come on, Modella Capital is just trying to make a quick buck by buying up struggling retailers and then selling them off for pennies. Like, what's the point of even calling it an investment firm if they're not gonna hold onto anything? And now they're just abandoning Claire's and leaving hundreds of people jobless... that's just cold blooded. And don't even get me started on their so-called "commitment" to turning businesses around - sounds like a bunch of corporate doublespeak to me 
.
I thought it was gonna be a good place to buy some new accessories for my birthday but nope. anyway, its kinda weird that they chose not to keep The Original Factory Shop because I like shopping there too 
does anyone know if theyre gonna close those stores? 
i feel bad for all those jobs at risk tho 
but i get why modella capital is trying to make moves and stuff they gotta think about their own investment returns and all that 
. It's not easy to step into a struggling business and try to save it. But at the same time, they gotta be realistic about the market and the competition. I mean, these online specialists are killing it right now 
. Experts are talking left and right, and I'm here for it 
. It's gonna be interesting to see how Modella Capital recovers from this (or if they even do 
).
And what about all those people who lost their jobs? That's just not cool, man. 
I remember when I was younger, stores used to stay open even if business was slow because it was a part of the community. Now it seems like everyone is just trying to make a quick buck and leave whoever gets left behind high and dry. 
. Are they really going to find ways to turn these businesses around? Or is it just a case of "buy, close, and move on" 
. It's got me thinking... how can we ensure that companies like Modella Capital are acting with the best interests of employees and local communities in mind? 
their approach might be a bit aggressive but hey at least theyre trying to make a difference 
now i know some ppl are saying theyre not making enough returns on investment but come on its not like its easy to turn around a struggling business, modella capital is doing way more than most firms would even think about doing 
so yeah i think they should get some major props for trying 
600 jobs lost in 9 months, wow what a success story 