The high street chain formerly known as WH Smith has received court approval to proceed with 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 scheduled to close, with confirmed dates.
TG Jones’ restructuring plan was sanctioned by the High Court earlier this year in an effort to prevent the business from becoming insolvent. The chain was rebranded as TG Jones last year following its purchase by Modella, while WH Smith retained its travel location stores at airports and train stations.
Currently, TG Jones operates around 450 stores, employing approximately 4,700 staff primarily in the UK. Alex Willson, chief executive of TG Jones, stated: “The plan 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 indicated that the “working assumption” is that around 150 stores will close due to the restructuring. Landlords unwilling to accept reduced rental rates have the option to terminate their leases. He also highlighted a “long-term sales decline” affecting the business, worsened by high inflation, increased online shopping, reduced consumer spending, and rising labour costs and taxes.
The rebranding from WH Smith to TG Jones has also been cited as a factor contributing to decreased sales. The original WH Smith business was established in 1792 by Henry Walton Smith and his wife Anna as a news vendor in Little Grosvenor Street, Mayfair. After their deaths, their youngest son William Henry Smith took over in 1812, expanding the business throughout the 19th century. The last family member left the company board in 1996. More recently, the company decided to separate its travel stores from high street shops, selling the latter to Modella last year.
A TG Jones spokesperson said: “We appreciate this will be disappointing news for our colleagues, customers and the local community. Our priority now is supporting those affected colleagues while continuing to serve our customers.”