An insolvency specialist has warned that the retail crisis is 'far from over' after TGJones, formerly known as WHSmith, announced the potential closure of 150 stores across the country. The chain's owners attribute the planned closures to a combination of government policy and recent geopolitical events, which they say have created 'highly challenging trading conditions' over the past year.
Job Losses and Restructuring
Hundreds of jobs at TGJones are at risk as part of the restructuring plans. The company stated that the closures are necessary due to weak consumer spending, cost-of-living pressures, and rising operating costs. The business was rebranded from WHSmith after Modella Capital purchased 480 stores last year.
A spokesperson for TGJones said: 'While we continue to believe in the strength of the core business, TGJones has experienced highly challenging trading conditions over the past year, along with many other brick-and-mortar retailers. Weak consumer spending and cost-of-living pressures, combined with rising operating costs as a direct result of government policy and recent geopolitical events, have meant that the company as a whole has remained loss-making.'
The spokesperson added that the forced name change from WHSmith had negatively impacted consumer awareness, despite improvements in the overall proposition. '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, and we are committed to engaging openly and constructively with colleagues and their representatives.'
The company acknowledged the uncertainty this creates for employees and communities, stating: 'We want to be clear, however, that 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.'
Expert Analysis
Molly Monks, insolvency specialist at Parker Walsh, commented: 'The transformation of retail was already under way but the cost of living crisis has dramatically accelerated the closure of stores that might otherwise have survived another few years. Discretionary spending has collapsed in many categories and footfall on high streets outside major city centres remains stubbornly below pre-pandemic levels.'
Monks highlighted ongoing challenges: 'Meanwhile, business rates continue to penalise physical retail in a way that online competitors simply do not face, an imbalance that the government has failed to correct. Wage bill increases flowing from the new National Living Rate and higher employer National Insurance have been the final blow for many. The sad reality is this pipeline of closures is far from over.'
Modella Capital, which also owned The Original Factory Shop and Claire's Accessories, has already closed all branches of those chains, underscoring the broader trend of retail contraction on British high streets.
