Wynsors World of Shoes is reportedly considering closing several stores as part of a restructuring process that could affect around 100 jobs, after it was acquired by an investment firm six months ago
Footwear retailer Wynsors World of Shoes is undergoing a restructuring process that could place 100 jobs in jeopardy, just six months after the chain was acquired by an investment firm.
Investment firm Modella Capital is reportedly in negotiations with landlords at 36 of the chain’s sites and briefed staff on plans for a company voluntary arrangement on Tuesday, 2nd June.
Wynsors CEO Adam Foster reportedly 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 employed by retailers to reach a compromise with landlords and other creditors in a bid to stave off insolvency.
The restructuring is anticipated to involve rent reductions at 36 of the chain’s 47 stores. A number of these shops, along with one of Wynsors’ two distribution centres, 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, known for its children’s school shoes collection, has stores predominantly located across northern England.
Modella Capital has a track record of snapping up troubled British high street names. The investment firm acquired both Claire’s and The Original Factory Shop last year.
Modella Capital also took over WH Smith, subsequently rebranding it as TG Jones, with creditor documents revealing that sales have nosedived.
The firm’s latest acquisition is the Flying Tiger chain, in a deal confirmed last month.
