Modella Capital, the private equity owner of the rebranded WHSmith high street chain TGJones, is to shutter up to 150 of its 480 shops in a sweeping restructuring exercise that places hundreds of retail jobs in jeopardy.
The closures, confirmed to the BBC, mark the latest blow to a high street already battered by stubbornly weak footfall, mounting cost pressures and a string of high-profile collapses. They come barely a year after Modella swept up WHSmith’s loss-making bricks-and-mortar arm in a £40m deal struck in March 2025, with the WHSmith name itself excluded from the transaction and retained by the listed group, which has pivoted to its more lucrative travel concessions in airports and railway stations.
A Modella spokesperson said the decision had “not been taken lightly”, citing what it described as exceptionally tough trading. “While we continue to believe in the strength of the core business, TGJones has experienced highly challenging trading conditions over the past year, along with many other brick-and-mortar retailers,” they said.
The firm laid the blame squarely at the door of three culprits: the “forced” rebrand from the trusted, 233-year-old WHSmith fascia, which it said had dented brand recognition almost overnight; rising operating costs “as a direct result of government policy”, a thinly veiled reference to the increase in employer National Insurance contributions and the higher national living wage that have hammered labour-intensive retailers; and unspecified “geopolitical events”.
The restructuring plan, the spokesperson added, is “designed to protect the substantial core of the store estate and create a stronger, more sustainable business that can continue to serve customers for years to come”.
Modella has not yet specified how the cuts will be apportioned across its workforce, but conceded the plan “may result in the closure of some stores and the loss of some roles”. The owner said it would attempt to preserve “as many jobs as possible” and acknowledged the toll on staff, adding: “We recognise the impact this uncertainty will have on colleagues, their families and the communities we serve.”
The TGJones retrenchment lands less than a month after Modella’s stewardship of another high street stalwart ended in collapse. Claire’s, the teenage jewellery and accessories chain, ceased trading in the UK and Ireland in April, closing all 154 standalone stores and making 1,300 staff redundant. Modella had bought the British arm of the chain out of administration only last September, before placing it back into insolvency proceedings after what it called an “alarmingly” weak Christmas. The firm also owns Hobbycraft, the arts-and-crafts retailer, raising fresh questions in the City over the durability of its high street portfolio.
For the SME owners and independent traders that share Britain’s high streets with TGJones, the planned closures are a sobering reminder that scale offers no immunity. The combination of post-Budget cost increases, persistent shifts to online spending and the loss of anchor retailers continues to thin out town centres at pace, with knock-on consequences for footfall and the smaller businesses that depend on it.
Whether Modella’s pared-back TGJones estate can find a sustainable footing without the WHSmith name above the door, and without the cross-subsidy once provided by stationery, books and Post Office concessions, will be the defining test of its turnaround thesis.
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TGJones owner Modella Capital to shut up to 150 former WHSmith high street shops