Modella Capital, the owner of the TGJones store chain, has announced plans to close up to 150 stores out of the 480 that were previously part of WHSmith. This decision is part of a restructuring plan aimed at improving the company's financial performance amid difficult business conditions.
Last year, Modella Capital acquired WHSmith's stores and rebranded them under the TGJones name. However, the challenges faced by the company in the market led to this difficult decision, with the company confirming that business conditions were a key factor in the need to close the stores.
Details of the Restructuring Plan
TGJones, like many traditional retailers, is facing significant difficulties in the market due to changes in consumer behavior and rising operational costs. A spokesperson for Modella Capital stated that the decision was not made lightly, but it was necessary to ensure the sustainability of the business in the future.
The spokesperson also noted that the mandatory name change negatively impacted public awareness of the brand, making it harder to compete in the market. Additionally, the rise in operational costs was a direct result of government policies and recent geopolitical events.
Background & Context
Historically, WHSmith was one of the leading bookstore chains in the UK, offering a wide range of books and stationery. However, in March 2025, the traditional retail division of WHSmith was sold with the aim of focusing on stores located in travel sites such as airports and train stations.
This move follows the closure of the Claire's chain, which was also owned by Modella Capital, as it ceased operations in the UK and Ireland, resulting in the loss of 1,300 jobs. These events highlight the increasing challenges faced by companies in the traditional retail sector.
Impact & Consequences
The restructuring plan is expected to affect hundreds of jobs, although Modella Capital has not yet specified how the closures will impact employment. However, the company has confirmed that it is striving to retain as many jobs as possible.
This step is part of broader efforts to improve the financial performance of the stores, but it also reflects negative trends in the retail sector, where many traditional retailers are struggling to adapt to rapid market changes.
Regional Significance
Although this news pertains to the retail market in the UK, it reflects similar challenges that may be faced by markets in the Arab world. With the rise of e-commerce and changing consumer behaviors, many traditional stores in the Arab world may find themselves in a similar position.
These challenges require Arab companies to rethink their strategies to adapt to the changing market, which may lead to changes in how services and products are delivered to consumers.