Up to 150 former WH Smith stores, now rebranded as TG Jones, are facing closure under a radical restructuring plan by their owner Modella Capital, putting thousands of jobs at risk. The investment company, which bought 480 high street stores for £76 million last year, blamed weak consumer spending, rising costs, and geopolitical events for the chain's continued losses.
Eight stores will close immediately, while Modella is demanding 100% rent holidays on about 100 more and 75% rent reductions on hundreds of others for a year, with further cuts thereafter. If landlords refuse, the stores could shut. Staff were informed that between 100 and 150 outlets are likely to close as a result.
Modella rebranded the stores as TG Jones, ending 233 years of the WH Smith name on the British high street. The company said the name change negatively impacted consumer awareness, despite improvements to the proposition. It plans to invest £35 million as part of a turnaround under the restructuring.
Industry insiders suggest Modella always intended to close dozens of stores after a block on closures ends in June, noting that a slimmed-down chain of around 350 shops was the goal. They cautioned that turning the business around in the current retail climate would be tough, with perhaps a one-in-three chance of success.
The restructuring follows the collapse of other Modella-owned chains Claire's and The Original Factory Shop, which closed all stores with the loss of about 2,500 jobs. WH Smith's travel stores, which remain owned by the parent company, are unaffected. The restructuring plan requires approval from creditors and a court process.
