TGJones to close up to 150 former WHSmiths stores after rescue deal approval
TGJones is set to close up to 150 former WHSmith high street stores after its proposed restructuring deal was approved by the High Court.
In addition, the retailer – which is owned by Modella Capital – will also seek to slash rents on its remaining store estate. Under the terms of the restructuring, some 120 landlords will receive no rent for up to three years, while rent will be cut at hundreds of other stores by between 15% and 75%.
TGJones currently operates 451 stores nationwide, employing over 4,700 workers.
WHSmith offloaded its high street business last year to focus on its more profitable travel division, which still operates under the company’s original name. The remaining shops’ rebrand to TGJones meant that the WHSmith name disappeared from UK high streets after almost 200 years.
Modella previously said the restructuring plan is required to protect the core of the store estate and build a more sustainable business. The firm also said it plans to invest £35m into the retailer, introducing rent reductions and changes to supplier repayment terms.
The group said some of the problems facing the business, including a cash shortfall of nearly £8m, were due to serious underinvestment in stores by the chain’s previous owners. It also blamed its current poor trading on “challenging retail conditions” as well as its inability to keep the WHSmith name.