Up to 150 WH Smith high street stores will close after the high court approved a significant restructure. The plan, which involves debt write-offs and rent cuts, aims to make TG Jones (formerly WH Smith) a more sustainable business, though it faced criticism for its speed and valuation.
TG Jones (formerly WH Smith) plans to restructure, leaving small suppliers, including Help for Heroes charity, with less than half of owed money, while 'exit contract' suppliers may see debts wiped out, with potential long-term profit shares.
WH Smith issued a profit warning, expecting £75m-£90m pre-tax profits, down from £90m-£105m, due to falling shopper numbers in US airports linked to the Middle East war. The retailer raised £102m via a share sale.
Modella, owner of WH Smith's former high street chain (now TG Jones), plans to close up to 60 Post Offices within its stores as part of a restructuring, citing weak consumer spending and rising costs, sparking fears of 'postal deserts' and thousands of job losses.
Low-profile Modella has positioned itself as a key creditor, landlord and brand owner to struggling TG Jones as store closures and job cuts loomShoppers at WH Smith were once accustomed to being offered cheap chocolate stacked high at the counter while buying their morning newspaper. Now, the chain’s former high street stores have themselves become the subject of a cut-price deal – as the low-profile investment group that snapped them up appears set to pay less than half of the original cash price.The paperclips to books chain had notched up 233 years on the British high street when it was bought by Modella Capital last summer. Continue reading...
Rolling coverage of the latest economic and financial newsStarmer faces fight to survive as Streeting and Rayner eye leadership bidsGovernment bond yields are rising across the board this morning, although UK debt is leading the losses.US and eurozone borrowing costs have also pushed higher, on concerns that the lack of progress towards ending the Iran war will lead to higher oil prices, more inflation, and higher interest rates.Inflationary headwinds as a consequence of the conflict in the Middle East are weighing on a number of UK businesses. We have already heard from companies like Next, Asos, Sainsbury’s and WH Smith which have warned of higher costs. Now shares in Victrex have shed almost 6% today on the back of a profit warning. It anticipates weaker annual profit before tax of between £42m and £44m for fiscal 2026, falling short of estimates for £46.6m. First half underlying pre-tax also profit dropped by 18% to £19m.The UK mid-cap polymer maker says the Iran war will push up energy and raw material inflation. The company is responding by reducing headcount by 10% to cut costs elsewhere. Continue reading...
Exclusive: Documents show Modella Capital, which bought the chain last year, is so far owed £2.9m in royalty feesThe investment company that owns the former WH Smith high street stores is charging the retailer millions of pounds in licence fees for the right to use its widely derided TG Jones name, the Guardian can reveal.Modella Capital – which bought the chain from WH Smith’s parent company last year – on Wednesday blamed weak consumer spending as it laid out a restructuring plan that could shut 150 of its 450 shops. It also said “the forced name change from WH Smith has also negatively impacted consumer awareness”. Continue reading...
Modella Capital, which rebranded shops as TG Jones, unveils major restructure and is seeking rent holidaysUp to 150 former WH Smith stores are likely to close, putting thousands of jobs at risk under a radical restructuring plan by their new owner, which had rebranded the shops as TG Jones.The investment company Modella Capital, which bought WH Smith’s chain of 480 high street stores for £76m last year, blamed “weak consumer spending” as it set out the plan to landlords on Wednesday. Continue reading...
New owner Modella Capital, which rebranded shops to TG Jones, blames weak consumer spending Dozens of former WH Smith stores are likely to close, putting thousands of jobs at risk under a radical restructuring plan by their new owner, which had rebranded the shops to TG Jones,The investment company Modella Capital, which bought WH Smith’s chain of 480 high street stores for £76m last year, blamed “weak consumer spending” as it set out the plan to landlords on Wednesday. Continue reading...
WH Smith has issued a profit warning and suspended shareholder payouts as the travel-focused retailer grapples growing travel disruption caused by the Middle East crisis.
Sainsbury's has warned that profits could fall this year as the Middle East conflict squeezes customer budgets and pushes up business costs. The supermarket group reported a 1.1% increase in annual profits to £1.03bn for the year to 28 February, but uncertainty over the war means profits could be marginally higher or lower than last year. The company predicted underlying profit of £975m to £1.03bn and gained its highest market share in a decade.
