The move comes amid a flurry of high-street chain closures
Share
The owners of the formerly-named WH Smith’s high street stores have brought in a team of corporate troubleshooters less than a year after taking over the chain.
Modella Capital, which acquired the business from WH Smith in June 2025, has appointed advisers from Teneo to draw up a restructuring plan aimed at placing the chain — now trading as TG Jones — on a more sustainable footing.
The move is likely to heighten concerns among staff about a fresh wave of store closures and job losses, at a time when several retailers linked to Modella have collapsed.
Around 80 TG Jones stores, out of roughly 480 nationwide, are understood to be most at risk following a prolonged period of weak trading, according to The Telegraph.
While no decisions have yet been made, a store closure programme is believed to be one option on the table.
Modella’s ability to act is constrained by the terms of its £40 million takeover agreement, which reportedly prevents it from closing underperforming stores for 12 months after the deal.
WH Smith sold the business last June, ending a 230-year presence on the UK's high streets.
At the time of the acquisition, Modella said TG Jones would retain the same products and services — including Post Office counters and Toys “R” Us concessions — and continue trading as usual while management developed a longer-term growth strategy.
However, rising rents, years of underinvestment under its previous owner and recent tax increases have all damaged performance.
Increases to employer National Insurance contributions and the National Living Wage are also believed to have added several million pounds to annual costs.
Modella executives have reportedly acknowledged that they underestimated the impact of losing the WH Smith brand name as part of the acquisition.
Stores yet to be rebranded as TG Jones are understood to be performing better than those already operating under the new identity.
In announcing the deal, Modella described TG Jones as “a worthy successor” to the WH Smith brand, combining its heritage with fresh capital and strategic backing to “unlock sustainable growth” and restore the stores as a focal point of local high streets.
Modella has become one of the most active buyers of underperforming retailers in recent years, though its track record has been mixed.
The firm placed The Original Factory Shop and Claire’s Accessories into administration in January, resulting in around 2,200 job losses and nearly 300 store closures.
Nick Stockley, partner at law firm Mayo Wynne Baxter, said TG Jones "must decide" where it sits in the market or it could face a similar "bleak future" to Claire’s and The Original Factory Shop.
He said: "These latest events highlight the ongoing battle that all businesses appear to be facing when trying to retain a presence on the high street.
"Shopping habits have changed dramatically over the past few years.
"As with other Modella brands, TG Jones represents a further attempt to keep a failing business, WH Smith, alive."
LBC has approached Modella for comment.
