TG Jones owner Modella Capital is reportedly preparing a major restructuring of the former WHSmith high street business, which could lead to the closure of up to 100 stores.
The private equity firm, which acquired WHSmith’s high street bookshop and newsagent estate last year and rebranded it as TG Jones, is understood to be drawing up plans aimed at avoiding a potential collapse of the business.
According to reports, the restructuring would affect around 100 of the chain’s 480 shops, while keeping approximately 400 branches trading if landlords agree to rent reductions.
The plans follow the expiry of a 12-month moratorium on closures that was agreed as part of the acquisition from WHSmith in 2025.
WHSmith retained its travel business, which operates from locations such as railway stations and airports.
Modella is said to be working with professional services firm Teneo and law firm Slaughter and May on the proposal.
The business is reportedly considering using a legal mechanism known as a “cram-down”, which can allow a restructuring plan to be pushed through with the approval of one class of creditor and the High Court, even if other creditors object.
Secure Trust, which is understood to have provided a £50m loan to support the acquisition, is expected to play a key role in negotiations.
The potential closures come less than a year after Modella completed the purchase of WHSmith’s high street arm, which included 464 stores across high streets, shopping centres and retail parks. At the time of the deal, the business generated annual turnover of more than £400m and EBITDA of £41.2m in WHSmith’s 2024 financial year.
However, the retailer is reported to have struggled since the rebrand to TG Jones, with some sites that temporarily kept the WHSmith name said to have performed better than those operating under the new fascia.
The business had previously set out ambitions to grow the estate to more than 500 stores and position TG Jones as a “hub of the high street”.
Stores understood to be at risk include locations in Swindon, Chippenham, Oxford, Ipswich, Hampshire and North Wales. The TG Jones branch in Stirling is also expected to close in July after its lease renewal failed.
The restructuring would mark a significant reversal for Modella’s plans for the chain and comes as mid-market high street retailers continue to face pressure from rising costs, weaker consumer demand and changing shopping habits.
Modella has also been rationalising parts of its wider retail portfolio, with recent closures across other businesses it owns blamed on difficult trading conditions and increased operating costs.
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