The Original Factory Shop owner, Modella Captial, is plotting a radical restructuring of the chain, just weeks after taking control.
The private equity firm has drafted in advisors to explore options for the business – according to a Sky News report.
The report stated that Modella is thought to be considering a Company Voluntary Arrangement (CVA) to close underperforming stores and forcing through rent cuts on others.
The retailer’s distribution centre is also thought to form part of the proposals for a potential restructuring.
The fund, is also thought to have its eye on WHSmith’s high street business, took control of the chain’s 180 UK stores and its workforce 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.
