London, May 6, 2026, 16:01 BST
- TGJones kicked off a formal restructuring process, with owner Modella Capital putting up over £35 million to back the effort.
- Up to 150 ex-WH Smith shops might be on the chopping block, according to reports. The Guardian obtained a plan showing eight closures set to happen right away.
- The retailer points to sluggish consumer spending, higher costs, and losing the WH Smith name as reasons.
TGJones—once WH Smith on the high street—has kicked off a restructuring just months after Modella Capital bought the chain, a move that threatens jobs and could shutter locations. According to The Guardian, eight shops are shutting their doors right away. Reports from the Financial Times and Telegraph suggest up to 150 sites might be in the firing line out of the 450 still open.
This move is landing at a rough moment, with UK retailers contending with softer demand and operating costs on the rise. TGJones warned the plan could mean shutting some stores and potential job cuts, but emphasized there’s no final word yet. Modella is backing the effort with over £35 million.
TGJones described the past year as “highly challenging” for trading, pointing to soft consumer spending, cost-of-living pressures, increased costs tied to government policy, and fallout from the Iran war. The company also blamed what it called a “forced name change” from WH Smith for hurting consumer awareness, even as it argued its offer had improved. Reuters
Things aren’t getting easier for the wider market. Martin Sartorius, lead economist at the Confederation of British Industry, flagged a tougher April for retailers as sales slowed, consumer confidence stayed shaky, and companies continued to grapple with elevated costs and lackluster demand.
“The survival of this iconic 234-year-old business is our imperative,” a TGJones spokesperson said. TGJones described the restructuring move as a way to safeguard the bulk of its store estate and lay a foundation for a more resilient business. Reuters
Rent remains the sticking point. According to the Guardian, Modella wants full rent waivers—100% holidays—across roughly 100 stores, with a 5% cut on rent for hundreds of other locations for a year, and further reductions down the line. Landlords who push back could see more shops shutter.
The company’s restructuring hinges on getting creditors on board and a green light from the court. Essentially, this is a legal arrangement aimed at slashing costs and locking creditors—landlords among them—into the process, even as business operations continue. Forget just watching shopper numbers; it’s the creditor vote that now takes center stage.
WH Smith struck a deal in March 2025 to offload its UK high-street arm to Modella for an enterprise value of £76 million. At the time, it said the unit had a workforce of roughly 5,000 spread across around 480 shops. The group is holding on to its travel division, which continues under the WHSmith name at airports, train stations, and hospitals.
WH Smith had pitched the deal as its move to focus squarely on travel retail. Back then, the company said travel operations brought in 75% of total revenue and 85% of trading profit over the last financial year. The plan was to rebrand the high-street stores as TGJones, following a brief handover.
Competition in the sector isn’t playing out the same way for everyone. The Works, which leans on its network of over 500 stores for books, crafts, and discount goods, has pulled the plug on ecommerce and is ramping up physical store expansion instead, with more openings in the pipeline. TGJones is opting for a different fix—slashing rents in hopes of keeping its retail footprint intact.
Modella’s spotty retail history could give landlords pause. Last month, City AM noted that Claire’s Accessories and The Original Factory Shop shuttered every store following administration. The Guardian put the resulting job losses at around 2,500, and pointed out that Modella’s Hobbycraft chain had already seen shop closures in an earlier shakeup.
Rent reductions might fall short. Should creditors or the court throw out the plan—or if the rebrand fails to pull shoppers back—closures could extend well past the initial group. But if the proposal gets approval, Modella’s injection of cash could keep Britain’s old WH Smith high-street chain running, just on a leaner scale.
