Modella Capital

Modella Capital is a private equity firm that has recently acquired several retail chains. The firm is currently newsworthy due to the financial difficulties faced by some of its portfolio companies. Specifically, The Original Factory Shop has called in administrators, putting 1,200 jobs at risk. Furthermore, Claire's is also reported to be on the brink of administration, potentially impacting another 1,350 jobs. Modella Capital cites the challenging climate on UK high streets and a drop-off in pre-Christmas trading as contributing factors. While Modella Capital recently acquired the high street arm of WH Smith (renamed TG Jones), the potential collapse of two other significant holdings highlights the pressures facing retailers and the risks associated with private equity ownership in the current economic environment.