UK high street chain TG Jones, rebranded from WHSmith, could shut up to 100 stores less than a year after its takeover. The move comes as its new owner, Modella Capital, scrambles to keep the business afloat by securing a new debt deal, according to Sky News.
Debt Refinancing and Store Closures
The report, first posted by Sky News City Editor Mark Kleinman, said the firm behind the chain of newsagents is "on the verge" of refinancing its debt facilities. Under the proposals, roughly 100 stores will be closed, and substantial rent cuts will be imposed on many remaining landlords.
Customer Reactions
Shoppers have expressed mixed feelings about the chain. One told the Guardian: "It's not what it was when you could buy records and toys. It doesn't really know what it is. I'd like to see more arts stuff and stationery. Books and toys everyone can get cheaper elsewhere." Another shopper commented: "It's more convenient to shop at the supermarket." Two sisters added: "I tend to go to cheaper shops for cards." One noted: "People don't tend to get cards as often, as a stamp costs more than the card these days."
Another customer said: "Back in the day I used to shop in WH Smith, but now it's too expensive when I can go to Poundland and buy 10 pens for £1. With the cost of living crisis, I'm looking for bargains bottom line." A final comment highlighted the rebranding: "I loved Smiths. I used to say to my husband: 'I'm just popping down to Smiths' but I'll never be able to say: 'I'm popping to Jones's.'"
Impact on Jobs
The potential closures place hundreds of jobs at risk, according to the report. Modella Capital is working to secure a new debt deal to keep the chain afloat, but the restructuring will involve scores of shop closures alongside the refinancing.
