Buyer of WH Smith in late stage talks to snap up leading footwear chain
The investment firm which bought WH Smith is in advanced talks to takeover a privately owned footwear retailer as it looks to snaps up more UK high street staples.
Modella Capital is in late stage talks to buy Wynsors World of Shoes, which trades from approximately 50 standalone shops across the the north of the country, according to reports from Sky News.
Retail industry sources said Modella was now the likeliest buyer of Wynsors, with a deal potentially being struck before the end of the year.
Wynsors has been exploring a sale for the past two months, hiring accountancy firm RSM to look for prospective bidders.
The retailer, which focuses on the school shoes segment of the footwear market, is understood to have seen its recent performance impact by the labour costs introduced in last year’s Budget.
This is similar to many retailers, who have had to freeze hiring or reduce costs in order to deal with increased national insurance contributions and national minimum wage.
Snapping up brands
If a deal between the company and investment firm is completed, Wynsors would join a number of brands under Modella’s ownership, including TG Jones, the new name of WH Smith’s high street chain, Hobby Craft and The Original Factory Shop.
Modella purchased WH Smith in a £76m deal in March, after winning an auction deal process against Alteri investors.
Shares in the high street stationery store have plummeted 42 per cent this year to date to 686 pence.
The firm was also one of the bidders for Poundland, which was ultimately sold during the summer to fellow specialist retail investor Gordon Brothers.
Modella declined to comment to Sky News.