TG Jones, the high street chain formerly known as WH Smith, has gained court approval for a significant restructuring plan expected to result in the closure of approximately 150 stores and impact hundreds of jobs. This month, 19 branches across the country are set to close, with specific closure dates now confirmed.
Earlier this year, the High Court approved TG Jones’ restructuring strategy aimed at preventing insolvency. The company was rebranded as TG Jones last year following its acquisition by Modella, while WH Smith retained its travel location stores in airports and train stations.
TG Jones currently operates around 450 stores, mainly across the UK, employing about 4,700 staff. Alex Willson, TG Jones’ chief executive, emphasised that the restructuring “protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business.”
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Tom Smith KC, representing TG Jones, previously stated that the “working assumption” is for about 150 stores to close under the plans, as landlords unwilling to accept reduced rent rates may choose to terminate leases. He highlighted challenges contributing to the company’s difficulties, including a prolonged decline in sales aggravated by high inflation, increased online shopping, reduced consumer spending, alongside higher labour costs and taxes.
Mr Smith also noted that the rebranding from WH Smith had negatively affected sales. For context, WH Smith was founded in 1792 by Henry Walton Smith and his wife Anna as a news vendor on Little Grosvenor Street in Mayfair. After their passing, the youngest son, William Henry Smith, took over in 1812, leading to expansion throughout the 19th century. The last family member left the board in 1996, after which the company divided its operations, selling the high street stores to Modella last year.
A TG Jones spokesperson remarked, “We appreciate this will be disappointing news for our colleagues, customers and the local community. Our priority now is on supporting those affected colleagues while continuing to serve our customers.”
Details of the 19 branches closing this month have been confirmed by TG Jones but were not listed in the statement.
The restructuring marks a significant shift for the high street chain, which faces ongoing challenges adapting to changing shopping habits and economic conditions.