Former WH Smith chain TGJones to cut costs, weigh store closures in restructuring
TGJones Launches Restructuring Plan Amid Challenging Retail Environment
May 6 (Reuters) - TGJones, the former WH Smith high street business, said on Wednesday it had launched a restructuring plan, backed by financial support from owner Modella Capital, that includes cost cuts and possible store closures.
Restructuring Objectives and Rationale
"The survival of this iconic 234-year-old business is our imperative," a TGJones spokesperson said, adding the restructuring would protect most of the retailer's store estate and build a stronger business.
Key Details of the Restructuring Plan
Here are some key details:
Challenging Trading Conditions
• "TGJones has experienced highly challenging trading conditions over the past year, along with many other brick-and-mortar retailers," the company said, citing weak consumer spending and higher costs stemming from government policies and the Iran war.
Impact of External Factors
• British retailers reported the sharpest year-on-year decline in sales in more than 40 years as the Iran war raised households' inflation fears, a survey showed last week.
Brand Awareness Issues
• The "forced name change" from WH Smith has also hurt consumer awareness, the company added.
Potential Store Closures and Job Losses
• The plan may result in store closures and job losses, though no decisions have yet been taken, the company said.
• The Financial Times first reported that the restructuring would result in the closure of up to 150 of TGJones' 480 stores.
Financial Support and Ownership Changes
• Modella Capital has committed more than 35 million pounds ($47.7 million) for the restructuring effort.
• WH Smith had agreed to sell its British high street business to Hobbycraft owner Modella in March 2025.
Additional Information
($1 = 0.7339 pounds)
(Reporting by Nithyashree R B and Ankita Bora in Bengaluru; Editing by Mrigank Dhaniwala and Vijay Kishore)