The Original Factory Shop owner Modella Capital is plotting a radical restructuring of the discount chain, just weeks after taking control.
The private equity firm drafted in advisors at Interpath to explore options for the business, including a company voluntary arrangement (CVA), Sky News reported.
Modella is thought to be considering a CVA to close underperforming stores and forcing through rent cuts on others.
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The retailer’s distribution centre is also thought to form part of the proposals for a potential restructuring.
Modella, which also has its eye on WHSmith’s high street business, snapped up the discount chain’s 180 UK stores and its workforce of around 1,800 employees last month.
The firm is understood to be one of two remaining parties in discussions to snap up WHSmith’s 500 plus High Street business.
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