Up to 150 Former WHSmith High Street Stores to Close

Up to 150 former WHSmith high – Modella Capital, the private equity firm that acquired WHSmith’s high street operations, has announced plans to shut up to 150 of the 480 stores previously under its ownership. The decision, part of a broader reorganization strategy, aims to streamline the business and focus on its core strengths. This move follows a year-long transformation of the stores, which were rebranded as TGJones after the acquisition. The restructuring will impact hundreds of positions, though Modella Capital has emphasized its commitment to minimizing job losses.

Rebranding and Retail Challenges

The TGJones rebranding was initiated last year when Modella Capital took over the High Street bookshops. While the name change was intended to revitalize the brand, the firm now admits it may have contributed to the brand’s struggles in a competitive market. According to a spokesperson, the closures are a necessary step to strengthen the business in the face of “intense retail market pressures.” The statement highlighted that the decision was made after a period of “difficult trading conditions,” which have affected many physical retailers in recent years.

“While we continue to believe in the strength of the core business, TGJones has experienced highly challenging trading conditions over the past year, along with many other brick-and-mortar retailers,” the spokesperson said.

Modella Capital cited several factors driving the closures, including the “forced” rebranding to TGJones, which it claims reduced public recognition of the brand. Additionally, rising operating costs were identified as a key issue, with the spokesperson attributing these expenses to “government policy” and “recent geopolitical events.” The firm emphasized that the restructuring is designed to safeguard the “substantial core of the store estate” and build a more resilient business model.

Job Impact and Employee Considerations

The closures will result in job losses, but Modella Capital has stated it is working to preserve as many roles as possible. A spokesperson noted that the plan may lead to “some store closures and the loss of certain positions,” acknowledging the uncertainty this creates for employees and their families. The firm also recognized the potential disruption to local communities, particularly those that have relied on the TGJones stores for years.

“We want to be clear, however, that the plan may result in the closure of some stores and the loss of some roles,” the spokesperson said. “We recognise the impact this uncertainty will have on colleagues, their families and the communities we serve.”

Despite the challenges, Modella Capital remains optimistic about the long-term viability of its remaining stores. The spokesperson framed the restructuring as a proactive measure to ensure the business can “continue to serve customers for years to come.” This approach aligns with the firm’s broader goal of optimizing its operations and adapting to evolving consumer preferences.

WHSmith’s Strategic Shift

Modella Capital’s acquisition of WHSmith’s high street business was part of a larger strategic shift by the original brand. In March 2025, WHSmith agreed to sell its high street operations for £40 million, allowing it to concentrate on its travel-focused shops in locations such as airports and train stations. The WHSmith brand itself was not included in the sale, maintaining its presence in specific markets.

This decision marked a pivotal moment for WHSmith, which had previously struggled to maintain profitability in the high street retail sector. By divesting its high street stores, the company aimed to refocus its resources on areas where it had a stronger foothold. Modella Capital, meanwhile, sought to leverage its expertise in revitalizing retail brands to turn the business around.

Previous Failures and Lessons Learned

The TGJones restructuring follows Modella Capital’s earlier struggles with another brand it owns, Claire’s. Last month, Claire’s ceased operations in the UK and Ireland, closing all 154 of its standalone stores and making 1,300 staff redundant. The decision to halt trading came after a “low Christmas trading period,” which the firm described as “alarmingly” poor. Modella Capital had purchased Claire’s in September 2025 following its administration, but the brand’s continued performance issues led to its own liquidation.

This series of closures underscores Modella Capital’s efforts to refine its portfolio. The firm has acknowledged that the challenges faced by TGJones and Claire’s are indicative of broader trends in the retail industry. With the high street sector increasingly under pressure from online competitors and shifting consumer habits, Modella Capital’s strategy of pruning underperforming assets is seen as a necessary step to ensure long-term success.

Modella Capital’s Diverse Retail Portfolio

Modella Capital’s ownership of multiple retail brands highlights its approach to diversification. In addition to TGJones and Claire’s, the firm also manages Hobbycraft, a popular craft and hobby store chain. The firm has positioned itself as a key player in the retail space, investing in brands with potential for growth while adapting to market changes.

While the closures of WHSmith’s high street stores and Claire’s represent setbacks, Modella Capital has framed its actions as part of a larger vision for resilience. The firm’s spokesperson stressed that the restructuring would allow it to “create a stronger, more sustainable business,” ensuring that it can navigate future challenges effectively. This approach reflects the growing emphasis on agility in the retail industry, where brands must constantly evolve to remain relevant.

As the retail landscape continues to shift, Modella Capital’s decisions highlight the ongoing battle for survival among traditional brick-and-mortar businesses. The firm’s focus on core operations and cost efficiency is expected to position TGJones for a more stable future, even as it faces the immediate impact of store closures and job losses. The hope is that these changes will enable the brand to thrive in an increasingly digital-first market, while maintaining its commitment to serving customers and communities.