TG Jones proprietor considers closing 80 shops in WHSmith excessive avenue restructuring
Modella Capital, the private equity group that bought WHSmith’s high street business, has appointed Teneo to assess restructuring options for the chain rebranded as TG Jones, with about 80 of 480 stores potentially facing closure
Multiple shops could close in the restructure (stock)(Image: tbradford via Getty Images)
Thousands of positions could be axed as the private equity firm that purchased WHSmith’s high street operation is contemplating closing around 80 outlets as part of a reorganisation.
Modella Capital on Monday (March 2) hired professional services company Teneo to evaluate options to boost the profitability of the 233-year-old retail chain, which was rebranded as TG Jones last year.
According to two sources familiar with the appointment, the proposals are in their infancy and might also include financial backing for TG Jones, noting that approximately 80 of the chain’s 480 branches could be closed. Negotiations with property owners over rent are likely to influence the final figure, they added.
The development follows Sean Toal’s departure as TG Jones’ chief executive last week, after fewer than 12 months in the position. He was succeeded by Alex Willson, the former boss of HobbyCraft, another firm in Modella’s collection.
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Initially, the £40 million acquisition of WHSmith’s high street division was the most prominent transaction completed by Modella last year, overseeing UK retailers that employed over 10,000 workers and operated nearly 1,000 outlets.
However, facing increased levies on enterprises and shoppers alongside persistent inflation, almost 300 premises were shuttered and over 2,000 positions were eliminated when two Modella enterprises, The Original Factory Shop and Claire’s Accessories, entered administration.
“The combination of cost inflation, weak consumer confidence and adverse Government fiscal policies puts significant pressure on all retailers,” Modella said in a statement, reports the Express.
“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.”
Modella bosses have allegedly acknowledged the firm miscalculated the impact of abandoning the WHSmith brand identity above its shops as part of the acquisition deal.
It’s believed that branches still operating under the WHSmith banner are performing better than those already rebranded as TG Jones.
Kirsty Fenlon at KOB Design remarked in a piece criticising the strategy: “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.”
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