Up to 150 former WH Smith stores facing closure putting hundreds of jobs at risk
Up to 150 former WH Smith stores are facing closure which could see hundreds of jobs axed under new plans.
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The chain's owners Modella Capital, which acquired the business last year, launched a restructuring plan today in an attempt to stop it from going bust.
Now trading under TG Jones after its rebrand, the company is set to close up to 150 of its 480 stores and told its staff to expect redundancies.
Bosses have blamed challenges in "trading conditions" over the past year and took aim at the government policies as well as citing the Middle East war.
According to the Financial Times, Modella will inform the first stores to be closed on Thursday morning with the business saying in a statement that the decision was "not been taken lightly".
It added that "the survival of this iconic 234-year-old business is our imperative".
The exact number of stores to be shut will be determined by two High Court hearings following negotiations between Modella and store landlords, but could result in up to 150 of 480 stores closing.
WH Smith, which still operates in airports and train stations, sold the business last June, ending a 230-year presence on the UK's high streets.
At the time of the acquisition, Modella said TG Jones would retain the same products and services, including Post Office counters and Toys “R” Us concessions, and continue trading as usual while management developed a longer-term growth strategy.
Modella also claimed that it was forced to change the name from WH Smith to TG Jones, which it claims has severely hurt consumer awareness and footfall.
Landlords overseeing the stores will be forced to accept long-term rent holidays and steep rent cuts or face the business shutting altogether.
During the rebrand last year, Modella described TG Jones as "a worthy successor" to the WH Smith brand, combining its heritage with fresh capital and strategic backing to "unlock sustainable growth" and restore the stores as a focal point of local high streets.