Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Up to 150 former WH Smith stores are reportedly at risk of closure under a restructuring plan aimed at preventing the business from collapsing, The Telegraph has reported.
It comes as investment firm Modella Capital, which now operates the high street chain under the TGJones name, is seeking major rent reductions across its store estate in efforts to cut costs amid weaker trading.
A TGJones spokesperson confirmed to Retail Sector that a restructuring plan has been launched to “make the business fit for the future”.
They said the plan is “an essential part of the company’s turnaround and will support further investment in stores over the long term”, adding that Modella Capital has committed more than £35m in financial contributions to support the process.
It comes as TGJones has “experienced highly challenging trading conditions over the past year, along with many other brick-and-mortar retailers”.
The business has faced significant challenges over the past year, citing cost-of-living pressures and geopolitical events as contributing factors.
It also noted that the forced name change from WHSmith has “negatively impacted consumer awareness, despite the fact that the proposition has improved”.
A TG Jones spokesperson told Retail Sector: “The restructuring plan is designed to protect the substantial core of the store estate and create a stronger, more sustainable business that can continue to serve customers for years to come. We are extremely grateful to the many stakeholders who have pledged their support, including the Post Office and Toys R Us.
“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.”
They added: “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.”
