Up to 150 former WH Smith high street stores could shut across the UK under a sweeping restructuring plan announced by new owner Modella Capital, placing thousands of retail jobs at risk.
The stores, which were rebranded as TG Jones after Modella acquired the business for £76 million last year, are facing mounting financial pressures linked to weak consumer spending, rising operating costs and difficult trading conditions on the British high street.
Hundreds of Stores Under Review
According to restructuring documents presented to landlords, eight TG Jones stores are set to close immediately, while around 100 additional locations are being targeted for full rent holidays.
The company is also seeking temporary rent reductions across hundreds more shops. If landlords reject the proposed concessions, many of those stores could face closure.
Staff were informed that between 100 and 150 outlets may ultimately shut as part of the process, threatening a significant number of jobs across the retail chain.
Thousands of Jobs Could Be Affected
The former WH Smith high street business currently employs around 5,000 workers across the UK.
The potential closures have raised concerns over further job losses in Britain’s struggling retail sector, which has already seen numerous store shutdowns and restructuring programmes in recent years.
Retail analysts say rising inflation, weaker household spending and growing competition from online shopping continue to place major pressure on traditional high street chains.
TG Jones Blames Weak Consumer Spending
TG Jones said the restructuring had become necessary because the business remained lossmaking despite efforts to improve operations.
The company pointed to weak consumer demand, higher business costs and geopolitical instability as major challenges affecting the retail environment.
Executives also acknowledged that removing the long-established WH Smith branding had negatively affected customer recognition and footfall.
The company said the restructuring is intended to stabilise the business and protect the core of the store estate.
Modella Plans £35 Million Turnaround Investment
Modella Capital said it plans to invest £35 million into the chain as part of a broader turnaround strategy.
The restructuring proposal must still be approved by creditors and pass through a court process before implementation.
Company officials described the plan as essential to creating a smaller, more sustainable retail business capable of surviving current market pressures.
Industry Sources Expected Closures
Retail industry insiders suggested significant closures had long been expected following Modella’s takeover of the WH Smith high street business.
Sources said the investment group was widely believed to be aiming to reduce the chain to around 350 stores once restrictions in the original acquisition agreement expired.
Analysts also warned that rebuilding the business would remain difficult given current economic conditions and declining high street footfall.
Other Modella-Owned Retail Chains Have Struggled
The restructuring announcement comes after difficulties at several other retail chains linked to Modella Capital.
Retailers including Claire’s and The Original Factory Shop have already undergone major closures under the investment group’s ownership, resulting in thousands of lost jobs.
Modella’s ownership of Hobbycraft has also involved restructuring measures and store reductions in recent years.
These developments have increased concerns among landlords and retail workers about the future stability of TG Jones.
WH Smith Brand Ends After More Than Two Centuries
The disappearance of the WH Smith name from Britain’s high streets marked the end of one of the country’s oldest retail brands.
Founded in 1792 by Henry Walton Smith and Anna Smith in London, the company grew into one of Britain’s most recognisable chains through its expansion into books, newspapers, stationery and travel retail.
While the high street business was sold to Modella, WH Smith’s profitable travel division — including airport and railway station outlets — remains separately owned and continues trading under the original brand.
UK High Street Retail Faces Continuing Pressure
The TG Jones restructuring highlights the broader challenges facing UK high street retailers as consumers cut spending during the ongoing cost of living crisis.
Higher rents, rising wages, energy costs and changing shopping habits have forced many major chains to close stores or seek restructuring agreements in recent years.
Industry experts say retailers without strong online operations or distinctive branding remain particularly vulnerable in the current market.