Modella Capital, the owner of TG Jones and Flying Tiger Copenhagen, is reportedly considering a bid for luxury fashion brand Joseph, according to The Times.
The business mandated PwC earlier this year to run the sale process, with first-round bids already submitted, as the next phase of negotiations is expected to take place in mid-November.
Founded by Joseph Ettedgui in 1986, the label became a staple of British luxury fashion during the 1990s. Its designs were especially popular among high-profile figures including Kate Moss and Princess Diana.
Japanese group Onward Kashiyama has owned the label since 2005, when it acquired the business for £140m. Its products are stocked through hundreds of outlets internationally, alongside its own stores across the UK.
Modella, which has completed a string of high-street acquisitions, is understood to be among the parties interested in the process.
The brand has faced a challenging trading environment in recent years, prompting a recovery programme led by chief executive Barbara Campos. The brand has recently sought to refresh its identity, appointing designer Mario Arena in 2024. Arena previously held roles at Christopher Kane and JW Anderson. The label also returned to London Fashion Week after nearly a decade.
Despite recording a fall in revenue, Joseph made progress in reducing its losses, although turnover fell from £12m to £3.4m. The company is not understood to currently be facing financial distress. Its UK retail presence includes concessions in Harvey Nichols and Selfridges.
Modella Capital has built a portfolio of retail businesses through a series of acquisitions in recent years, including Hobbycraft, The Original Factory Shop, Claire’s and the former high-street arm of WH Smith, which it relaunched as TG Jones.
It has since expanded beyond the UK following its acquisition of Flying Tiger Copenhagen, the international variety retailer with hundreds of outlets worldwide. The GP was also linked to a potential bid for Poundland following the retailer’s financial difficulties although it is understood to have withdrawn from the process.
However, its existing investments have faced challenges; both Claire’s and The Original Factory Shop filed for administration this year.
The group also restructured TG Jones, securing court approval in July for a Company Voluntary Arrangement (CVA) that forced landlords to accept rent cuts. The agreement also involved closing more than 100 stores as part of efforts to prevent the retailer from collapsing. In exchange, Modella committed to a recovery programme giving affected landlords a share of future profits.
Modella, Joseph and PwC declined to comment.
