Key facts
- Modella Capital, owner of TG Jones, is reportedly exploring a bid for Harvey Nichols.
- Modella Capital acquired WH Smith's high street stores last year.
- The firm is also planning a significant restructuring of TG Jones, potentially closing up to 150 stores.
- Modella Capital recently put Claire's Accessories and The Original Factory Shop into administration.
Modella Capital, the investment firm that acquired the high street stores of WH Smith and rebranded them as TG Jones, is reportedly considering making a bid for the luxury department store chain Harvey Nichols. This potential move comes as Modella is also overseeing a significant restructuring of TG Jones, which could lead to the closure of up to 150 of its remaining 450 stores due to weaker trading conditions.
Modella Capital purchased the former WH Smith high street business last summer, with the deal eventually valued at significantly less than its initial estimate. The firm has since taken control of key assets, including the TG Jones headquarters, and has provided a rescue loan through Aurelius. The restructuring plan for TG Jones is expected to be finalized by the end of June, with options including store closures and seeking financial support from WH Smith.
In addition to the TG Jones situation, Modella Capital has recently placed Claire's Accessories and The Original Factory Shop into administration, citing challenging high street conditions and a lack of profitability for these businesses. The firm specializes in retail investment and has become a notable name in the industry.