UK shoe chain ‘plotting string of store closures’ – 100 jobs at risk | UK | News

Investment firm Modella Capital is said to have been in talks with landlords at the chain’s 36 locations and briefed staff on Tuesday (June 2) about the company’s voluntary regulation plans.

Wynsors CEO Adam Foster reportedly told The Sun: “Unfortunately, the severity of the challenges we face, from an extremely challenging trading environment to a significant cyber attack that has disrupted our core operations, has made this restructuring inevitable.

“Our focus now is on working constructively with our creditors, including landlords and other stakeholders, to ensure we continue to serve our customers and provide jobs for colleagues who will remain in the business.”

A company’s voluntary arrangement is often used by retailers to compromise with landlords and other creditors in order to avoid bankruptcy.

The restructuring is expected to include rent cuts at 36 of the chain’s 47 stores. Many of these stores, as well as one of Wynsors’ two distribution centres, are expected to close following discussions with their landlords.

If the regulation is approved, approximately 100 personnel are expected to lose their jobs.

“This was an incredibly difficult decision and I want to acknowledge the impact it will have on our colleagues who will be affected,” Foster said.

The chain, known for its children’s school shoes, is based mostly in the north of England.

Modella Capital is known to buy struggling British retailers. The company acquired both Claire’s and The Original Factory Shop last year.

Modella Capital also bought WH Smith, which it rebranded as TG Jones, with documents to creditors showing declining sales.

The company most recently acquired the Flying Tiger chain in a deal announced last month.