Major UK High Street Chain TG Jones Could Close Up to 80 Stores
In a significant blow to the UK retail sector, TG Jones, the high street chain previously known as WH Smith, is reportedly facing the potential closure of up to 80 stores, less than a year after its acquisition by Modella Capital. According to recent reports from The Telegraph and Sky News, the brand is under severe financial strain, which could result in the loss of approximately 100 jobs as part of restructuring efforts.
Financial Strain and Restructuring Plans
Modella Capital, which purchased the high street arm of WH Smith in June 2025 for an initial agreement of £52 million, has since secured a £12 million reduction in the price due to challenging trading conditions. The final deal amounted to up to £40 million, with half contingent on performance until August 2026. The company is now drawing up plans that may trigger a wave of store closures, focusing on a "significant minority" of the estate, which originally included around 550 stores.
Restructuring advisers are expected to be formally appointed by the end of the month, as Modella navigates the tough retail environment. This move highlights the ongoing struggles in the high street sector, exacerbated by the cost of living crisis and shifting consumer habits.
Consumer Shifts and Market Challenges
The potential closures come amid broader changes in consumer behavior. In interviews with The Guardian, shoppers expressed a preference for more affordable alternatives, such as Poundland and supermarkets, citing high prices at TG Jones. One shopper noted, "With the cost of living crisis, I'm looking for bargains bottom line," while others mentioned that convenience and lower costs for items like cards have driven them away from traditional high street retailers.
This sentiment reflects a wider trend where consumers are prioritizing value and convenience, putting additional pressure on established chains like TG Jones to adapt or face downsizing.
Separation from WH Smith Travel Retail
It is important to note that TG Jones is now entirely separate from WH Smith's travel retail arm, which continues to operate under the WH Smith name. The travel division remains listed on the London Stock Exchange and trades in airports, stations, and hospitals, unaffected by the high street chain's current troubles. This separation underscores the divergent paths of the two business segments in response to market dynamics.
As the situation develops, stakeholders will be closely watching Modella Capital's next steps, which could have lasting implications for the UK high street landscape and employment in the retail sector.
