Up to 150 high street stores previously part of the WH Smith business are set to close as a "direct result of government policy and recent geopolitical events," according to the company's owners. It is understood that hundreds of jobs at TGJones are at risk as part of restructuring plans deemed necessary after a year of "highly challenging trading conditions."
Background of the Closures
The shops were rebranded under the name TGJones following the acquisition of 480 WH Smith stores by Modella Capital last year. In a statement provided to the Press Association on Wednesday, a spokesperson for the business emphasized that the decision to restructure "had not been taken lightly."
Reasons for Restructuring
The statement elaborated: "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. 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 forced name change from WH Smith has also negatively impacted consumer awareness, despite the fact that the proposition has improved."
Impact on Jobs and Communities
The company stressed its commitment to preserving jobs where possible. "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."
