Firm who bought WHSmith shops plans 80 more stores closures across UK

Thousands of jobs may be lost as the private equity group that bought WHSmith’s high street business is considering shutting about 80 stores as part of a restructuring. Modella Capital on Monday appointed professional services firm Teneo to assess options to enhance the profitability of the 233-year-old high-street business, which was rebranded as TG Jones last year.

According to two people with knowledge of the appointment, the plans are at an early stage and could also involve financial support for TG Jones, adding that about 80 of the chain’s 480 stores could be shut. Discussions with landlords on rent are likely to impact the final number, they added.

The news comes after Sean Toal stepped down as TG Jones’ CEO last week, after less than a year in the role. He was replaced by Alex Willson, the former chief executive of HobbyCraft, another company in Modella’s portfolio.

Originally, the £40 million deal for WHSmith’s high street business was the most high-profile deal struck by Modella last year, controlling UK retailers that employed more than 10,000 staff and had close to 1,000 stores.

“The combination of cost inflation, weak consumer confidence and adverse Government fiscal policies puts significant pressure on all retailers,” Modella said in a statement.

“Against this backdrop, the management of TG Jones is working hard to turn around this important retail business and they are drawing on the best available advice in doing so.”

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Modella executives have reportedly admitted the company misjudged the consequences of losing the WHSmith brand name above its stores as part of the takeover agreement.

It is understood that outlets still trading under the WHSmith name are outperforming those that have already been rebranded as TG Jones.

Kirsty Fenlon at KOB Design said in an article critical of the approach: “A high street brand revamp should be versatile, not bland. A modern retail brand needs to live across hundreds of touchpoints – in-store, digital, packaging, and wayfinding. The visual identity needs to flex confidently without becoming sterile. This means layered brand elements: secondary marks, patterns, graphic motifs that extend the personality, not erase it.”