Modella Capital, the private equity owner of TGJones, Hobbycraft and Flying Tiger Copenhagen, has reportedly joined the bidders for British fashion brand Joseph. Its Japanese owner, Onward Kashiyama, paid £140 million for the label in 2005 and has had PwC sounding out buyers since August, with the next bidding stage reportedly due this month.
Joseph is a premium British label that trades through its own UK shops and concessions and is stocked by multibrand retailers around the world, routes to market distinct from the operator model used across the UK franchise directory.
Reports of Modella’s interest appeared on 2 November, drawn from a story in the Times titles: Retail Week credits The Sunday Times, while FashionNetwork credits The Times. Modella, Joseph and PwC have all declined to comment, so the interest is reported, not confirmed, and no offer has been disclosed.
What is reported about the sale process
Sky News reported in August that Onward Kashiyama had appointed PwC to hold talks with prospective buyers, a step TheIndustry.fashion described at the time as exploratory, with no buyers, valuation or timetable disclosed. FashionNetwork now reports that one round of bidding has reportedly taken place and that the next stage is due this month.
Onward Kashiyama has owned Joseph for 21 years. No current valuation has been reported. TheIndustry.fashion linked the review to a period of change in premium fashion, including the growth of direct-to-consumer ecommerce and increased pressure on multibrand retail.
How Joseph has been trading
Joseph’s turnover fell to £45 million last year from £56 million. It remained loss-making, but the loss narrowed to £3.4 million from £12 million. The Times said the brand “is not thought to be in financial distress”. The label has tried to rebuild momentum under creative director Mario Arena, who was named almost two years ago, and it returned to London Fashion Week last year.
Where Joseph would sit in the Modella portfolio
Modella also owns Hobbycraft and has bought the Danish homewares chain Flying Tiger Copenhagen and Dealz Poland. Its record is mixed: the Guardian reported in August that it owned the UK arm of Claire’s and The Original Factory Shop until both collapsed earlier this year, and TGJones went through a court-approved restructuring plan that closes up to 150 shops.
FashionNetwork notes that Modella usually invests in retailers at the lower end of the price scale, so a premium fashion label would sit outside that pattern. It also reports that Modella has reportedly left the Poundland sale process.
What happens next
Good to know
Joseph trades through its own shops and concessions, so this is a brand sale, not a franchise story. The interest from Modella is reported by a newspaper and has not been confirmed by any party.
The next bidding stage is reportedly due this month, and none of the parties has commented. An agreed sale would normally surface through an announcement by Onward Kashiyama or the buyer, and later through filings at Companies House for the UK business. Until then, the only public figures are last year’s turnover and loss, and the 2005 purchase price.
Any buyer would also need to assess the brand’s operations across its retail, digital and wholesale channels, which is the split TheIndustry.fashion pointed to in August.
