Firm who bought WHSmith shops plans 80 more stores closures across UK | UK | News
Thousands of jobs could be lost as the private equity group that bought WHSmith’s high street business considers closing around 80 stores as part of a restructuring. Modella Capital appointed professional services company Teneo on Monday to consider options to improve the profitability of the 233-year-old high street business, which was rebranded as TG Jones last year.
Plans are in the early stages and could also include financial support for TG Jones, according to two people with knowledge of the appointment. He also added that about 80 of the chain’s 480 stores may be closed. Negotiations with landlords about rent will likely affect the final figure, they added.
The news comes after Sean Toal stepped down as CEO of TG Jones last week after less than a year in the role. He was replaced by Alex Willson, former chief executive of HobbyCraft, another company in Modella’s portfolio.
Initially, the £40m deal for WHSmith’s high street business was the highest-profile deal struck last year by Modella, which employs more than 10,000 staff and controls UK retailers with close to 1,000 stores.
“The combination of cost inflation, weak consumer confidence and negative Government fiscal policies is placing significant pressure on all retailers,” Modella said in a statement. he said.
“Against this backdrop, TG Jones’ management is working hard to turn around this important retail business and in doing so they are using the best advice available.”
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Modella executives have reportedly admitted that the company misjudged the consequences of losing the WHSmith brand over its stores as part of the takeover deal.
Outlets currently trading under the WHSmith name are understood to be performing better than outlets currently rebranded as TG Jones.
In an article criticizing the approach, Kirsty Fenlon of KOB Design said: “A high street brand refresh must be multifaceted, not soft. A modern retail brand needs to live across hundreds of touchpoints – in-store, digital, packaging and wayfinding. The visual identity needs to flex with confidence without being sterile. This means layered brand elements: secondary marks, patterns, graphic motifs that expand personality, without erasing it.”
