Mass job losses are feared after the owner of high street chain TG Jones announced proposals to revive the loss-making retailer
More than one in four former WH Smith high street stores risk closure under sweeping plans.
The cull of up to 150 stores – which have been rebranded TG Jones – threaten large scale job losses among its 5,000 strong workforce.
A radical restructuring has been put forward by Modella Capital, which acquired WH Smith’s high street business for £40million last year.
Despite ambitions to grow the business, it has instead suffered tough trading and mounting costs. Bosses have also blamed the loss of the WH Smith name for putting off shoppers. The remaining WH Smith business is now concentrated on its travel stores situated in airports and railway stations, as well as hospitals.
Insiders have also blamed the cost of refurbishing the stores, claiming many had been barely touched this century.
Modella is set to begin negotiations with store landlords that will ultimately determine the number of stores that will shut. It could result in up to 150 of the 480 TG Jones closing. The outcome will determined through two High Court hearings scheduled for next month.
The move also threatens the future of a large number of Post Office branches that are situated in TG Jones stores.
Modella has been prolific in snapping-up struggling retailers over the past 18 months, including Hobbycraft, the Original Factory Shop and Claire’s Accessories. However, Hobbycraft has been put up for sales and the Original Factory Shop and Claire’s Accessories have collapsed into administration.
A TG Jones spokesperson said: “TGJones has launched a formal process known as a restructuring plan to make the business fit for the future. The plan is an essential part of the company’s turnaround and will support further investment in stores over the long term.
“Modella Capital has committed to financial contributions totalling more than £35million as part of the process.
“This decision has not been taken lightly. While we continue to believe in the strength of the core business, TG Jones has experienced highly challenging trading conditions over the past year, along with many other brick-and-mortar retailers.
“Weak consumer spending and cost-of-living pressures, combined with rising operating costs as a direct result of government policy and recent geopolitical events, have meant that the company as a whole has remained loss-making.
“The forced name change from WH Smith has also negatively impacted consumer awareness, despite the fact that the proposition has improved.”
It went on: “The survival of this iconic 234-year-old business is our imperative. No decisions have yet been taken on how this will impact roles, but we will aim to preserve as many jobs as possible. Any potential store closures or role reductions will be subject to appropriate consultation, and we are committed to engaging openly and constructively with colleagues and their representatives.
“We want to be clear, however, that the plan may result in the closure of some stores and the loss of some roles. We recognise the impact this uncertainty will have on colleagues, their families and the communities we serve.”

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