More than 25% of former WH Smith high street stores are at risk of closure as part of extensive plans. Up to 150 stores, now rebranded as TG Jones, face potential shutdowns, endangering numerous jobs within the 5,000-employee workforce.
Modella Capital, which acquired WH Smith’s high street business for £40 million last year, has proposed a significant restructuring. Despite initial growth aspirations, the business has struggled due to challenging trading conditions and escalating costs. The loss of the WH Smith brand has also deterred customers. The focus has now shifted to the remaining WH Smith travel stores in airports, railway stations, and hospitals.
Concerns have been raised about the high costs of renovating the stores, with many reportedly untouched for years. Modella is preparing to engage in discussions with store landlords to determine the fate of up to 150 out of the 480 TG Jones outlets. The final decision will be made following two High Court hearings scheduled for next month.
The potential closures also put numerous Post Office branches located within TG Jones stores in jeopardy. Modella has recently acquired struggling retailers like Hobbycraft, the Original Factory Shop, and Claire’s Accessories. However, Hobbycraft is up for sale, while the latter two have gone into administration.
A spokesperson for TG Jones stated that a restructuring plan is underway to ensure the long-term viability of the business. Modella Capital has pledged financial support exceeding £35 million to facilitate this process. The decision, prompted by challenging trading conditions and rising costs, aims to secure the future of the 234-year-old business.
While job impacts are still uncertain, the company is committed to minimizing job losses and engaging in open consultations with employees and their representatives. Store closures and role reductions will be subject to proper discussions, with a focus on preserving jobs. The plan acknowledges the potential hardships faced by employees, their families, and the communities served by the business.
