Up to 150 former WH Smith high street stores, now rebranded as TG Jones, face possible closure under a sweeping restructuring plan proposed by Modella Capital, the owner of the chain. The move threatens significant job losses among the retailer's 5,000-strong workforce.
Restructuring Plan
Modella Capital, which acquired WH Smith's high street business for £40 million last year, has initiated a formal restructuring plan to revive the loss-making retailer. The company has blamed tough trading conditions, rising costs, and the loss of the WH Smith name for deterring shoppers. Insiders also cited the high cost of refurbishing stores, many of which had barely been updated this century.
The plan could result in the closure of up to 150 of the 480 TG Jones stores. The final number will be determined through negotiations with landlords and two High Court hearings scheduled for next month. The future of many Post Office branches located within TG Jones stores is also at risk.
Financial Commitment
Modella Capital has committed to providing over £35 million in financial contributions as part of the restructuring process. Despite this, the company has experienced challenging trading conditions, weak consumer spending, cost-of-living pressures, and rising operating costs due to government policy and geopolitical events.
A TG Jones spokesperson stated: "The survival of this iconic 234-year-old business is our imperative. No decisions have yet been taken on how this will impact roles, but we will aim to preserve as many jobs as possible. Any potential store closures or role reductions will be subject to appropriate consultation."
The spokesperson added: "The plan may result in the closure of some stores and the loss of some roles. We recognise the impact this uncertainty will have on colleagues, their families and the communities we serve."
Broader Context
Modella Capital has been active in acquiring struggling retailers over the past 18 months, including Hobbycraft, the Original Factory Shop, and Claire's Accessories. However, Hobbycraft has been put up for sale, while the Original Factory Shop and Claire's Accessories have collapsed into administration.
