TG Jones could be shuttering up to 150 stores as the former WH Smith business undergoes a restructuring plan to put it on a more sustainable footing.
Its parent company Modella Capital, which purchased WH Smith last year then rebranded stores to TG Jones, said the decision was due to “highly challenging trading conditions”, hampered by rising operating costs and “weak consumer spending”.
The name change from WH Smith had also “negatively impacted consumer awareness, despite the proposition improving”, the business added.
Eight of its 480 stores are expected to close immediately, while Modella Capital is demanding landlords accept rent holidays and rent cuts as part of its rescue efforts, as first reported by the Telegraph.
The business could not confirm how many colleagues would be affected but said it was “committed to engaging openly and constructively with colleagues and their representatives”.
Modella Capital has committed to financial contributions totalling more than £35m as part of the process.
“This decision has not been taken lightly,” said a TG Jones spokesman. “While we continue to believe in the strength of the core business, TG Jones has experienced highly challenging trading conditions over the past year, along with many other brick & mortar retailers.
“Weak consumer spending and cost of living pressures, combined with rising operating costs as a direct result of government policy and recent geopolitical events, have meant that the company as a whole has remained loss-making.
“The restructuring plan is designed to protect the substantial core of the store estate and create a stronger, more sustainable business that can continue to serve customers for years to come. We are extremely grateful to the many stakeholders who have pledged their support, including the Post Office and Toys R Us.
“The survival of this iconic 234-year-old business is our imperative. No decisions have yet been taken on how this will impact roles, but we will aim to preserve as many jobs as possible. Any potential store closures or role reductions will be subject to appropriate consultation, and we are committed to engaging openly and constructively with colleagues and their representatives.
”We want to be clear, however, that the plan may result in the closure of some stores and the loss of some roles. We recognise the impact this uncertainty will have on colleagues, their families and the communities we serve.”
No comments yet