Modella Capital

Modella Capital is a private equity firm currently facing significant challenges with its retail investments in the UK. The firm recently acquired The Original Factory Shop, a discount retailer with 137 stores, less than a year ago. However, The Original Factory Shop has now called in administrators, putting 1,200 jobs at risk, citing higher costs from government policies as a contributing factor. News reports also indicate that Claire's, another retail chain owned by Modella Capital, is nearing collapse, potentially jeopardizing an additional 2,550 jobs. Modella Capital attributes these difficulties to an "extremely challenging" climate on UK high streets and a decline in pre-Christmas sales. These events highlight the pressures facing retail businesses in the current economic environment and the risks associated with private equity investments in this sector.