Latest news with #Modella
Scottish Sun
3 days ago
- Business
- Scottish Sun
Full list of 14 shops set to close next month in a blow to shoppers – is your area affected?
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MAJOR retailers will close several stores for good this month as the high street continues to face difficulties. This year businesses have faced increased costs due to Government changes announced in the Budget. Sign up for Scottish Sun newsletter Sign up 1 14 shops are set to close in June as retailers face lower footfall and higher costs Credit: Getty An increase in employer National Insurance contributions, energy and rent costs and lower customer footfall have all piled on pressure. As a result, some retailers have been forced to hike prices, review expansion plans and reduce the number of stores they have. But remember, retailers regularly close shops for a number of reasons, not just because they are struggling. For example, they may have a nearby store that is performing better or may want to move to a location that will have a higher footfall, such as a retail park. Here is a full list of the shops we know are shutting in June 2025. The Original Factory Shop The discount high street chain is set to close nine shops next month as it prepares to shutter a total of ten branches in the coming weeks. The Original Factory Shop previously warned it would have to shut some 'loss-making' locations after it began to struggle in recent years. The retailer is now set to close the following shops this month: Milford Haven, Pembrokeshire - June 26 Perth - June 28 Chester Le Street, County Durham - June 28 Arbroath, Angus - June 28 Kidwelly, Carmarthenshire - June 28 Pershore, Worcestershire - June 28 Normanton, West Yorkshire - June 28 Peterhead, Aberdeenshire - June 28 Shaftesbury, Dorset - June 28 It will also close a store in Staveley, Cumbria on July 12. Private equity firm Modella bought The Original Factory Shop back in February and has since launched a restructuring effort to renegotiate rents at 88 The Original Factory Shop stores. Modella also recently bought Hobbycraft and WHSmith's high street shops. Poundland Poundland is set to close a store this week as a further 200 shops remain at risk. The bargain retailer is set to close its branch in Surrey Quays, London, on June 11. Why are retailers closing shops? EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre's decline. The Sun's business editor Ashley Armstrong explains why so many retailers are shutting their doors. In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping. Falling store sales and rising staff costs have made it even more expensive for shops to stay open. The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April 2025, will cost the retail sector £2.3billion. At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40. In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed. The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing. Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns. Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead. In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few. What's increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online. They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places. The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year. Bidding for the business started last month. Gordon Brothers, the ex-owner of Laura Ashley, and Homebase owner Hilco are reported to be in a two way race to win the chain. A decision on who the preferred bidder is could be announced in the coming days. Polish retail giant Pepco said it expects the sale of Poundland to be completed by September. Daniel of Ealing The iconic department store will close its doors for good in June after 120 years on the high street. The retailer has launched a huge clearance sale, with up to 50% off beds, furniture, homeware and fashion. Its final day of trading will be June 8. Rising costs and a struggling high street have forced the family-run business to call time on the store. The business was founded in 1901 by Walter James Daniel and began as a small draper's shop in Ealing, London. The Windsor flagship shop will remain open, alongside its online business. The firm said five Daniel employees will be impacted by the closure. The Works The Works is set to close its Margate High Street store on June 8. Its next nearest store will be at the Westwood Cross Shopping Centre or Ramsgate Garden Centre. A spokesperson for The Works said: 'As part of ongoing plans to optimise our store portfolio, we will be closing our Margate store. 'We have loved being part of the local community and apologise for any inconvenience caused by this closure. 'Customers can continue to shop with us at our nearby stores at Westwood Cross Shopping Centre and Ramsgate Garden Centre.' The chain has already closed five other branches this year. These closures are part of the normal process of closing under performing sites. Iceland The supermarket chain will close its store in College Square, Margate, on June 21. Iceland has not yet confirmed the reason for the sudden closure but it said that staff at the Margate branch will be offered jobs within the business. Iceland is completing a broader reshuffle of its operations as it adapts to shifting consumer habits, cost pressures and the growing demand for convenience and online shopping. Ginger The much loved clothing shop will close its doors for good this month after nearly 50 years in business. Ginger will shut for good on June 7, after the owners said they were forced to make an 'incredibly difficult decision'. The shop was founded by David and Rodger Kingsley in 1978 following the success of their sister company Jonathan Trumbull in 1971. The store manager blamed the current economic climate and the aftermath of Covid-19 for the business's hardship. The shop has launched a closing down sale as it prepares to close. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Yahoo
07-05-2025
- Business
- Yahoo
New WH Smith owner Modella seeks to add Poundland to retail empire
The little-known investor cutting a swathe through the British high street has made it onto a shortlist of bidders vying to buy Poundland, the struggling discounter. Sky News has learnt that Modella is among a handful of bidders notified in recent days that they have made it through to a second stage of the auction of Poundland. Its progress in the sale process raises the prospect of Modella taking ownership of its fourth major British retailer in less than nine months. ADVERTISEMENT Advertisement Money latest: Uber making big changes to how you pay The investment firm already owns Hobbycraft and The Original Factory Shop, where it has in recent weeks launched company voluntary arrangements - court-sanctioned restructuring deals which allow it to close loss-making stores and slash rent payments. Modella has also agreed to buy WH Smith's historic high street chain and rebrand it under the name TG Jones. That deal has yet to close, and Sky News reported at the weekend that Modella will effectively be prohibited from launching a CVA there for at least a year under the terms of its deal with WH Smith. ADVERTISEMENT Advertisement Among the other suitors for Poundland are Endless, the turnaround investor, and Hilco Capital, the new owner of Lakeland. Poundland has been put up for sale by Pepco Group, its Warsaw-listed owner, amid mounting losses and a struggle to turn the company around. Pepco confirmed in March that it planned to explore a sale of the business, with Teneo hired to advise on an auction. Last year, Poundland, which employs about 18,000 people, recorded roughly €2bn of sales. Earlier this year, Pepco, which also trades as Pepco and Dealz in Europe, said Poundland had seen a like-for-like sales slump of 7.3% during the Christmas trading period. ADVERTISEMENT Advertisement Read more from Sky News: China moves to ease tariff pain ahead of US trade war talks Plans to expand massive offshore windfarm under threat In an accompanying trading statement, Pepco said that Poundland had suffered "a more difficult sales environment and consumer backdrop in the UK, alongside margin pressure and an increasingly higher operating cost environment". Recent tax hikes announced by Rachel Reeves, the chancellor, in last autumn's Budget have also increased the financial pressure on high street retailers. Modella declined to comment on its interest in Poundland.
Sky News
07-05-2025
- Business
- Sky News
New WH Smith owner Modella seeks to add Poundland to retail empire
The little-known investor cutting a swathe through the British high street has made it onto a shortlist of bidders vying to buy Poundland, the struggling discounter. Sky News has learnt that Modella is among a handful of bidders notified in recent days that they have made it through to a second stage of the auction of Poundland. Its progress in the sale process raises the prospect of Modella taking ownership of its fourth major British retailer in less than nine months. The investment firm already owns Hobbycraft and The Original Factory Shop, where it has in recent weeks launched company voluntary arrangements - court-sanctioned restructuring deals which allow it to close loss-making stores and slash rent payments. Modella has also agreed to buy WH Smith's historic high street chain and rebrand it under the name TG Jones. That deal has yet to close, and Sky News reported at the weekend that Modella will effectively be prohibited from launching a CVA there for at least a year under the terms of its deal with WH Smith. Among the other suitors for Poundland are Endless, the turnaround investor, and Hilco Capital, the new owner of Lakeland. Poundland has been put up for sale by Pepco Group, its Warsaw-listed owner, amid mounting losses and a struggle to turn the company around. Pepco confirmed in March that it planned to explore a sale of the business, with Teneo hired to advise on an auction. Last year, Poundland, which employs about 18,000 people, recorded roughly €2bn of sales. Earlier this year, Pepco, which also trades as Pepco and Dealz in Europe, said Poundland had seen a like-for-like sales slump of 7.3% during the Christmas trading period. In an accompanying trading statement, Pepco said that Poundland had suffered "a more difficult sales environment and consumer backdrop in the UK, alongside margin pressure and an increasingly higher operating cost environment". Recent tax hikes announced by Rachel Reeves, the chancellor, in last autumn's Budget have also increased the financial pressure on high street retailers.
Sky News
04-05-2025
- Business
- Sky News
WH Smith buyer 'faces 12-month ban' on mass shop closures
The new owner of WH Smith's high street chain has effectively been barred from launching a wave of mass store closures for at least 12 months amid plans for rapid restructurings at two other retailers it owns. Sky News has learnt that WH Smith would have the right to cancel a year-long transitional services agreement (TSA) put in place with Modella Capital - which struck a deal to acquire the business in March - if it launched a company voluntary arrangement (CVA) before the first anniversary of the transaction's completion. The clause in the TSA, which enables Modella Capital to continue using WH Smith's systems after it takes ownership, is significant, according to retail insiders. WH Smith agreed to sell its 480 high street shops to Modella in a £76m deal, ending 233 years of high street history. Modella plans to rebrand the chain under the name TG Jones after it takes control. In recent weeks, Sky News has revealed plans drawn up by Modella to launch CVAs at both Hobbycraft and The Original Factory Shop, which it has owned for nine and three months respectively. Both of those restructuring processes have put significant numbers of stores at risk, and industry executives say that, over time, a sizeable part of the WH Smith high street estate could also be at risk. A spokesman for Modella said: "We have a number of exciting plans for the future of TGJones. "A CVA is not on the agenda, as it is a solvent business."
Yahoo
04-05-2025
- Business
- Yahoo
WH Smith buyer 'faces 12-month ban' on mass shop closures
The new owner of WH Smith's high street chain has effectively been barred from launching a wave of mass store closures for at least 12 months amid plans for rapid restructurings at two other retailers it owns. Sky News has learnt that WH Smith would have the right to cancel a year-long transitional services agreement (TSA) put in place with Modella Capital - which struck a deal to acquire the business in March - if it launched a company voluntary arrangement (CVA) before the first anniversary of the transaction's completion. The clause in the TSA, which enables Modella Capital to continue using WH Smith's systems after it takes ownership, is significant, according to retail insiders. WH Smith agreed to sell its 480 high street shops to Modella in a £76m deal, ending 233 years of high street history. Modella plans to rebrand the chain under the name TG Jones after it takes control. In recent weeks, Sky News has revealed plans drawn up by Modella to launch CVAs at both Hobbycraft and The Original Factory Shop, which it has owned for nine and three months respectively. Both of those restructuring processes have put significant numbers of stores at risk, and industry executives say that, over time, a sizeable part of the WH Smith high street estate could also be at risk. A spokesman for Modella said: "We have a number of exciting plans for the future of TGJones. "A CVA is not on the agenda, as it is a solvent business." WH Smith, which will become a pure-play travel retailer once the Modella deal completes, declined to comment further ahead of the completion of the sale.
