TGJones confirms stores may close amid ‘restructuring’

The high street branches of the stationery and supplies chain was rebranded last summer after more than 480 stores were sold to Modella Capital, owner of Hobbycraft.

It has now announced a restructuring plan, described as ‘an essential part of the company’s turnaround’, which could result in the losses of some stores and jobs in its massive portfolio.

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Retail Gazette said stores understood to be at particular risk include the Oxford branch in Cornmarket Street, as well as others in Swindon, Chippenham, Hampshire and North Wales.

The retail giant said the company has been ‘loss-making’ over the past year due to many factors, not least because of ‘the forced name change from WHSmith’, which it claims negatively impacted brand awareness.

WHSmith in Cornmarket Street, before it rebranded to TGJones (Image: Newsquest)

A spokesperson for TGJones said: “TGJones has launched a formal process known as a restructuring plan to make the business fit for the future.

“The plan is an essential part of the company’s turnaround and will support further investment in stores over the long term. Modella Capital has committed to financial contributions totalling more than £35 million as part of the process.

“This decision has not been taken lightly. 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.

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“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 WHSmith has also negatively impacted consumer awareness, despite the fact that the proposition has improved.

TGJones has announced a ‘restructuring plan’ (Image: Newsquest)

“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 company added that ensuring the survival of the ‘iconic’ 234-year-old business is an ‘imperative’ in the scheme.

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Regarding store closures, the spokesperson added: “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.”