Store closures alert: Up to 150 former WHSmith shops to shut down

This week, the firm began a restructuring of the retailer after purchasing WH Smith last year for £40million in a bid to secure the retailer's spot as the "hub of the high street".

A memo from Modella sent to TG Jones staff, seen by the Financial Times, the business overhaul would see 150 high street sites closed down, with redundancies at stores and its support centre.

In recent years, Modella has risen to become a leading buyer of troubled retailers under its chairman Steve Curtis, including Hobbycraft and Claire's Accessories.

Upon buying WHSmith's high street arm, the firm informed landlords of its plan to grow the number of stores to as 500 in the years to come.

TG Jones's landlords and creditors are expected to react to Modella's memo as franchise's look to slash operating costs and lock-in extra funding.

Based on the memo, Modella is looking to shut down eight locations to start with but this would rise to as high as 150 under the restructuring.

Impacted stores are expected to be told of their fate tomorrow morning (May 7), according to the private equity firm.

Furthermore, the organisation has stated it has received support from the Post Office, which manages kiosks in many TG Jones stores.

The firm's restructuring plan will be scrutinised in court sometime in June 2026.

GB News has contacted Modella Capital for comment.

A Modella spokesperson said: "TGJones has launched a formal process known as a Restructuring Plan to make the business fit for the future. The plan is an essential part of the company’s turnaround and will support further investment in stores over the long term.

"Modella Capital has committed to financial contributions totalling more than £35 million as part of the process. This decision has not been taken lightly. 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 forced name change from WHSmith has also negatively impacted consumer awareness, despite the fact that the proposition has improved.

"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. 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."

Molly Monks F.I.P.A., an insolvency specialist at Parker Walsh said: "The transformation of retail was already underway, 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.

"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."