The brand new proprietor of The Unique Manufacturing facility Store (TOFS) is drawing up plans for a radical restructuring of the low cost retailer simply weeks after taking management.
Metropolis sources stated on Tuesday that Interpath had been engaged to work on the plans.
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Modella is alleged to be inspecting a CVA with a view to closing underperforming shops and forcing by means of hire cuts on others.
A serious distribution centre can be thought to characteristic in potential proposals for a restructuring.
It isn’t regarded as targeted on compromising different courses of collectors.
Any so-called ‘landlord-led’ CVA which triggered retailer closures would inevitably result in job losses amongst TOFS’ workforce, which was stated to quantity about 1,800 folks on the time of final month’s takeover.
Additional particulars of the plans, together with the timetable for launching a CVA – which requires courtroom and creditor approval – have been unclear on Tuesday.
TOFS, which sells magnificence manufacturers akin to L’Oreal, the sportswear label Adidas and DIY instruments made by Black & Decker, trades from about 180 shops.
The chain, which was based in 1969, was purchased by the personal fairness agency Duke Avenue in 2007.
Duke Avenue had tried to promote the enterprise earlier than, having supported it by means of the COVID-19 pandemic with a money injection of greater than £10m.
It offered the corporate to Modella with no remaining financial institution debt.
The potential CVA at TOFS comes amid a frenetic interval of dealmaking for Modella.
Modella and Interpath declined to remark.
