Owner of former WH Smith shops calls for help as stores at risk
The investment firm which owns a string of former WH Smith stores has called in emergency advisors as it prepares for a drastic restructuring which could leave 80 stores at risk.
Modella Capital, which bought stationers WH Smith’s retail division in June 2025, has brought on advisers at consultancy firm Teneo to direct its restructuring, according to The Telegraph.
Modella, which also owns Hobbycraft, placed The Original Factory Shop and Claire’s Accessories into administration in January, in a move which caused 2,200 job losses and almost 300 store closures.
The equity firm purchased the 480 stores for £76m in March last year and runs them under the name TG Jones.
Around 80 TG Jones stores are most at risk, according to reports, with scores more potentially at risk if landlords refuse to agree to cheaper rent deals.
Stores suffering from loss of WH Smith brand
Modella’s agreement with WH Smith includes a clause effectively banning the former from shuttering struggling shops within 12 months of the takeover, according to The Telegraph.
The firm has reportedly admitted in private that sales have been hit by the poor name recognition of the new TG Jones brand, with sales at shops retaining the WH Smith storefront performing better than the renovated ones.
Though retail sales received an unexpected boost last month, retailers have warned they are suffering from high employment costs and the burden of new workers’ rights reforms.
More than half (52 per cent) of chief finance offers of UK retailers plan to cut working hours while 48 per cent will have to slash jobs entirely, according to a survey released by the British Retail Consortium last month.
Modella declined to comment to The Telegraph.