The new private-equity owners of rebranded WH Smith shops are set to close 150 branches, with hundreds of jobs at risk.
The owners, Modella Capital, launched a restructuring plan on Wednesday to rescue the ailing TG Jones business, with the store closures dealing yet another blow to the high street.
The high-street arm of WH Smith was bought last year by Modella for £40million, and rebranded as TG Jones. WH Smith retains its travel retail business, seen in airports and train stations.
Modella blamed the restructure on being ‘forced’ to ditch the household brand name WH Smith by its parent company.
The rebrand ‘negatively impacted consumer awareness’ despite the fact it had made improvements to the business, according to Modella.
It also blamed the challenging business climate on the Chancellor, Rachel Reeves.
The new private-equity owners of rebranded WH Smith shops are set to close 150 branches, with hundreds of jobs at risk
TG Jones is set to close up to 150 of its 480 stores and told its staff to expect redundancies. TG Jones employs 5,000 people.
WH Smith’s sales have struggled for years before Modella Capital bought the high-street division.
The first stores will be informed of closure and job losses on Thursday morning, according to the Financial Times.
Modella said in a statement that the ‘decision has not been taken lightly…[and] the survival of this iconic 234-year-old business is our imperative’.
