Modella Capital, the private equity firm that bought WHSmith’s high-street bookshop and newsagent business last year, rebranding them as TG Jones, is reportedly planning a drastic restructure that would involve the “closure of up to one hundred stores” in order to “stave off bankruptcy”.
The rumoured restructure follows the expiry of a 12-month moratorium on closures agreed upon during the 2025 acquisition from WHSmith, which still runs newsagents in travel locations such as train stations and airports.
The news will probably come as no surprise to downthetubes readers as we first reported on possible store closures back in March – but it’s bound to be deeply concerning for publishers whose titles survive in no small part thanks to high street sales, despite ongong moves to more dedicated subscription models.
Both The Bookseller (registration required) and The Sunday Times (subscription required) report on a plan that would involve closing up to one hundred of the chain’s 480 shops and “demands for rent cuts”.
Modella Capital is working with professional services firm Teneo and law firm Slaughter and May to finalise a proposal that reportedly aims to keep around 400 branches operational, provided landlords agree to significant rent reductions. The company intends to use a legal process called a “cram-down,” which requires approval from only one class of creditor and a High Court judge to force the restructure through.
With TGJones’ long-expected restructuring proposals expected to be put forward soon, Retail Week reports financial advisory firms are privately worried that Modella Capital’s latest attempts at a ‘cram-down’ could kill the measure off for good.
The largest creditor is reportedly Secure Trust, which provided a £50 million loan to fund the acquisition of the shops, who will be central to negotiations.
Reports indicate that stores rebranded as TG Jones have underperformed compared to those that temporarily retained the WH Smith name, and follows hot on the heels of all branches of other acquired chains, including Claire’s and The Original Factory Shop.
Stirling’s TG Jones is one of the first casualties in the closures, which will close on 11th July after lease renewal failed. Other areas specifically mentioned as having at-risk locations include Swindon, Chippenham, Oxford, Ipswich, and various towns across Hampshire and North Wales.
Optimism turns sour
This latest news is a far cry from the optimistic stance Modella Capital took when it acquired the High Street operations of WHSmith Plc in June 2025. The acquisition included 464 stores on high streets, shopping centres and retail parks across the UK. WHSmith High Street division had an annual turnover of over £400m and EBITDA of £41.2m in FY24.
As part of the deal, the High Street stores were rebranded as TG Jones, but, as we reported in March, Modella executives have conceded that the business underestimated the impact of being unable to keep the WHSmith name above the stores under the terms of its buyout, according to reports.
Stores not rebranded as TG Jones, chosen to keep a “family name” feel, are understood to have performed better than the sites those adopting the new name.
PG Buzz reports that when the company held its inaugural annual conference last November entitled “The Next Chapter”, it unveiled plans to expand to more than 500 shops nationwide, aiming to make the retailer the “hub of the High Street”.
London Loves Business notes Modella Capital has increasingly moved to rationalise its portfolio, having also placed Hobbycraft into insolvency proceedings following a period of poor trading. The firm has described recent closures across its holdings as a response to “alarming” cost pressures and deteriorating consumer demand.
“If approved, the TG Jones restructuring would represent one of the most significant single rounds of store closures since the rebranding,” LLB Finance Reporter Thea Coates notes, “underscoring the fragility of mid-tier high street operators as costs rise and consumer habits continue to shift away from physical retail.”
• Retail Week: Why TGJones’ impending restructuring has the retail property sector worried (Subscription Required)
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John is the founder of downthetubes, launched in 1998. He is a comics and magazine editor, writer, and Press Officer for the Lakes International Comic Art Festival. He also runs Crucible Comic Press.
Working in British comics publishing since the 1980s, his credits include editor of titles such as Doctor Who Magazine and Overkill for Marvel UK, Babylon 5 Magazine, Star Trek Magazine, and its successor, Star Trek Explorer, and more. He also edited the comics anthology STRIP Magazine and edited several audio comics for ROK Comics; and has edited several comic collections and graphic novels, including volumes of “Charley’s War” and “Dan Dare”, and Hancock: The Lad Himself, by Stephen Walsh and Keith Page.
He’s the writer of comics such as Pilgrim: Secrets and Lies for B7 Comics; “Crucible”, a creator-owned project with 2000AD artist Smuzz; and “Death Duty” and “Skow Dogs”, with Dave Hailwood.
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