Up to 150 former WHSmith high street stores are set to close as TG Jones begins a major restructuring of its estate, putting pressure on hundreds of jobs and leaving some town centres facing the loss of a long-standing retail anchor.
The retailer, which was created after Modella Capital bought WHSmith’s high street business last year, operates 451 stores, the vast majority of which are in the UK.
The overhaul means roughly one in three stores could disappear as TG Jones tries to strip out loss-making sites, reduce its rent bill and rebuild the remaining business around a smaller, more profitable estate.
The closures come less than a year after WHSmith completed the sale of its historic high street arm, separating it from the group’s stronger travel business in airports, stations and hospitals.
The stores were subsequently rebranded as TG Jones, but the business has struggled to stabilise following the switch, with weak consumer spending, rising costs and the challenge of replacing the WHSmith name all weighing on performance.
TG Jones had warned it was in serious financial distress and faced an £8m funding shortfall this week without the restructuring plan, which allows it to access fresh funding from Modella and renegotiate terms across the store estate.
While the plan avoids an immediate collapse into administration, it confirms the scale of the retrenchment now facing the former WHSmith high street chain.
The business is expected to rationalise its leasehold estate by removing uneconomic stores, while investing in the shops it keeps.
Chief executive Alex Willson has argued that the turnaround plan is realistic, but acknowledged that “turning around a business is not straightforward”.
The remaining estate is expected to focus more heavily on improved store standards, tighter product allocation and concessions including Post Office, Toys “R” Us and Hobbycraft.
However, the store closure programme is likely to have a wider impact than job losses alone. Many former WHSmith shops occupy prominent high street locations and continue to house services such as Post Office counters, which remain important to local communities.
The Guardian previously reported that up to 60 Post Office branches inside TG Jones stores could be affected, with the Post Office saying at the time that a small number of branches would close in the coming months while it looked for nearby alternatives.
The restructuring has also exposed tensions across TG Jones’ creditor base.
Landlords have been asked to accept rent cuts across much of the estate, while those whose stores are no longer viable can choose to take sites back rather than continue under reduced terms.
The plan had drawn opposition from several landlords, including British Land-linked creditors, although improved terms offered during negotiations helped soften resistance.
Small suppliers are also expected to take a significant hit. Non-core suppliers are due to receive 50 per cent of what they are owed, paid over three years, while core suppliers will be paid in full through monthly instalments after a six-month delay.
The closures mark another sharp blow for UK high streets, which have already seen a string of retailers use restructuring tools to cut rent liabilities and exit weaker stores.
For TG Jones, the challenge now is whether a smaller estate can repair the damage caused by a difficult sale process, a little-known replacement brand and long-running pressure on traditional high street stationery, books and convenience retail.
The business is betting that a leaner store base, lower rents and stronger in-store partnerships will give it a viable future.
But with up to 150 shops now facing closure, the price of saving the wider chain will be felt across town centres that have already lost many of their most familiar names.
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