TGJONES: Landlords revolt and bailiffs reclaim a Midlands store — as seven south-west Wales branches still hang in the balance

The former WHSmith chain, rebranded as TGJones after its high-street arm was sold last year, is trying to push through a major restructuring that would close more than 100 stores and slash rents — and the past few weeks have seen the dispute turn increasingly bitter.

The plan matters locally because seven branches across south-west Wales were named as potentially at risk when the closures were announced, including the stores in Swansea’s Quadrant, Carmarthen, Llanelli, Neath and Bridgend.

None of those local stores has been confirmed for closure, and the wider plan still requires court approval — but the turmoil engulfing the chain has intensified on several fronts.

In Great Malvern, Worcestershire, landlords sent in bailiffs to reclaim a store this week. A notice displayed on the shuttered shop said the locks had been changed and the lease terminated, with any goods inside to be collected by arrangement before the end of June.

It followed the news that a group of major landlords had declared the terms of the restructuring “unacceptable”.

British Land — one of Britain’s biggest commercial property groups — told Sky News the plan was “fundamentally unfair”, arguing it would impose steep rent cuts even on profitable stores. It has instructed law firm Hogan Lovells to challenge the proposals, and has been joined in objecting by fellow landlords Landsec, M&G and NewRiver REIT.

The landlords’ challenge centres on proposals under which more than 120 of the chain’s 451 stores would pay no rent for three years, while others would see rent cut by between 15% and 75%.

Owner Modella Capital, the private equity firm that bought the high-street business for a cut-price £42m, has warned the retailer could run out of cash unless property owners agree to significant concessions.

A TGJones spokesperson said the company was aware of concerns raised by a “small number of landlords”, insisted the plan was “designed to be fair to all stakeholders”, and said the terms would leave landlords “no worse off than the alternative”. The firm said Modella was making more than £35m of financial contributions to support the restructuring.

Modella has blamed the loss of the 234-year-old WHSmith name for many of the chain’s difficulties.

Against that backdrop, the chain’s new chief executive Alex Jones — who previously ran Hobbycraft after Modella bought it — used social media to set out an eight-point plan to turn the business around.

The measures include lowering shop fittings to open up sightlines, brightening stores with new lighting and repairs, cutting prices now the chain is no longer tied to WHSmith’s airport and rail pricing, and reintroducing store managers to its biggest branches — which, he revealed, currently have none, with some area managers each responsible for as many as 75 stores.

He also promised to let local teams choose products suited to their communities, and to expand partnerships with the Post Office, Toys R Us and Hobbycraft once the restructuring is complete — though he conceded “there will be some store closures along the way”.

It is the Post Office presence in many branches that has driven much of the local concern. As many as 60 of the chain’s Post Office counters are reported to be under threat nationally.

In Neath, Sioned Williams MS — now Wales’s Deputy First Minister — wrote to TGJones demanding answers over which stores face closure, warning that losing the Neath branch would cut off vital services for older residents and those with limited mobility.

The uncertainty also comes amid earlier revelations that the chain owed millions in unpaid taxes, and that former owner WH Smith had refused to fund enhanced redundancy payments for staff facing the axe.

In Swansea, the Quadrant store’s landlord is Centurion Group, which is separately preparing to name new tenants for the former Debenhams in the city.

Modella has presided over the insolvencies of Claire’s and The Original Factory Shop in recent months, and has this week launched a separate restructuring affecting Wynsors World of Shoes.

For now, the seven south-west Wales TGJones branches remain open and trading, with their longer-term future tied to the outcome of the restructuring battle playing out in the courts.

Related stories from Swansea Bay News

Seven south-west Wales stores at risk as chain announces 150 closures
The Swansea Quadrant, Carmarthen, Llanelli, Neath and Bridgend branches were all named as potentially affected.

Deputy First Minister raises alarm over Neath Post Office threat
Sioned Williams MS wrote to TGJones warning of the impact of losing the Neath branch.

Bailiff threat and tax debts cast fresh doubt over local stores
The chain owes millions in unpaid taxes, while WH Smith refused to fund redundancy payments.

FLYING TIGER: Firm behind former WHSmith store closure plans set to buy quirky Danish chain — we reveal what this could mean for Swansea and Carmarthen

Quirky Scandinavian brand Flying Tiger Copenhagen looks set to come under the ownership of a private equity firm that has presided over the recent collapse of several other well-known retail brands.

Modella Capital is closing in on a deal to buy the Danish variety retailer — including its two south-west Wales outlets in Swansea and Carmarthen.

The deal — first reported by The Times and tipped to be announced imminently — would add Flying Tiger’s 900 global stores to Modella’s growing portfolio. It would also expand the firm’s already substantial local footprint, with a Hobbycraft store at the Swansea West retail park in Fforestfach already in the portfolio, alongside TGJones outlets it inherited from WHSmith last year.

Who are Modella?

Modella Capital is a London-based private equity firm that has rapidly built up a portfolio of well-known British high street chains in recent years.

Its biggest acquisition was the £40 million purchase of WHSmith’s 480-store high street business in 2025, which it has since rebranded as TGJones.

Modella also owns Hobbycraft, and previously bought Claire’s Accessories and The Original Factory Shop — both of which subsequently fell into administration, resulting in hundreds of job losses.

The firm, which is chaired by retail investor Steve Curtis and run by managing director Joseph Price, operates as part of the wider Hay Wain Group — a family office led by financier Jamie Constable.

A track record of restructuring and closure

The Flying Tiger deal comes as Modella faces mounting questions over its existing retail empire.

The firm is currently pursuing a major restructuring of TGJones that, if approved by the High Court, would see up to 150 stores closed and steep rent reductions imposed on landlords at remaining sites. Modella has warned that without court approval by the end of June, the chain will go into administration.

Up to seven TGJones stores in south-west Wales are caught up in that restructuring process. The firm has already faced controversy locally after WHSmith refused to fund redundancy payments at the chain amid threats of bailiff action and tax debts.

The new TGJones chief executive, Alex Willson, who took over in April, has been openly critical of the chain’s previous management. He has described the business as having suffered a “slow death” under WHSmith ownership and said he found stores missing lightbulbs and ceiling tiles, threadbare carpets, and lifts and escalators that did not work.

Modella has pledged to invest millions of pounds in a turnaround plan if its restructuring proposal is approved by the court — and would be blocked from taking dividends from the business during the period landlords’ terms are reduced.

What this could mean for Swansea

In Swansea, Flying Tiger trades from a unit on Princess Way, in the heart of the city centre’s retail quarter.

The store sits in the same block as the newly opened Søstrene Grene store — another Danish variety retailer offering a similar product range that opened earlier this month in the former Zara unit just yards from Flying Tiger.

That puts two competing Scandinavian homeware brands within metres of one another on the same street — a direct competitive overlap that under different ownership models might not have lasted.

The same block also faces other changes. Directly across Princess Way sits Swansea Council’s recently opened Y Storfa community hub, in the former BHS unit on the corner with Oxford Street.

Next door to Y Storfa on Oxford Street, the flagship Marks & Spencer store is set to close on Saturday 30 May, ending decades of trading at the site. And just along Princess Way at the Quadrant Shopping Centre, the former Debenhams unit is expected to see new tenants announced shortly.

What this could mean for Carmarthen

For Carmarthen, the implications of any Modella restructuring of Flying Tiger could be more acute.

Flying Tiger trades from a unit at St Catherine’s Walk — the shopping centre that opened in 2010 with Debenhams as its flagship anchor store and which once promised to make Carmarthen the dominant shopping destination west of Swansea.

But since 2020, St Catherine’s Walk has seen a steady haemorrhage of national chains, including Topshop, Topman, Miss Selfridge, River Island, Debenhams, H&M, Joules, Monsoon, Accessorize, Fat Face and Burger King — leaving an increasingly thinned-out retail offer that has been bolstered in recent years by independent traders.

The closed Debenhams store at the centre of the shopping development meanwhile sits empty awaiting conversion into a new town centre hub called Atriwm, an opening now pushed back to 2027 following Carmarthenshire Council’s £146 million capital plan.

Flying Tiger has been one of the centre’s remaining sources of footfall — a popular destination for shoppers seeking affordable gifts, homeware and stationery in a familiar, branded environment.

The “fictitious brand” controversy

The Flying Tiger deal also lands at a moment of fresh scrutiny over Modella’s operating model.

Earlier this month, The Guardian revealed that Modella is charging TGJones millions of pounds for the use of the TGJones brand name itself — a brand the firm created when it bought WHSmith’s high street business and rebranded the stores.

Modella has defended its track record by blaming “adverse government fiscal policies” and weak consumer confidence for the difficulties facing its existing retail businesses. The firm has previously said it acquires retailers in need of “significant investment” with the aim of returning them to sustainable growth, while accepting that it “won’t win every battle”.

What Flying Tiger says

Flying Tiger Copenhagen itself is a Danish-founded variety retailer best known for its colourful homeware, stationery, arts and crafts supplies, toys, gifts and party goods — typically priced at the lower end of the high street and laid out in maze-like store designs that guide customers through the entire shop floor before reaching the tills.

The brand traces its origins to a Copenhagen flea market in the 1980s, where founders Lennart and Suz Lajboschitz began selling umbrellas. The first permanent store opened in the Danish capital in 1995, with every item originally priced at 10 Danish krone.

The chain reported turnover of 5.2 billion Danish krone — around £600 million — in 2024, and employs thousands of staff globally across 30 European markets and franchise partners in the Philippines, Vietnam and Israel.

The retailer underwent a major financial restructuring in early 2025 which put control in the hands of a coalition including former chief executive Martin Jermiin, finance chief Christian Kofoed Hertz Jakobsen, and banks Danske Bank and Nordea. Jens Aarup Mikkelsen took over as chief executive in February.

What happens next

Modella has so far declined to comment on what it describes as “market speculation” about the Flying Tiger deal.

For shoppers in Swansea and Carmarthen, the takeover does not — on current information — point to any immediate change in trading at either store. Flying Tiger has been performing strongly enough at a global level to attract a substantial private equity buyer.

But what comes after a Modella takeover at any of its previous acquisitions has been less reassuring. With the TGJones restructuring still working its way through the courts, the recent administrations of Claire’s and The Original Factory Shop, and the firm’s existing Hobbycraft outlet at Fforestfach already in the portfolio, the ownership change is one shoppers in both towns will want to watch closely.

Related stories from Swansea Bay News

Seven south-west Wales TGJones stores at risk as chain announces 150 closures
Our coverage of Modella’s planned TGJones restructuring and its local impact.

WHSmith sells high street stores which will be renamed TGJones
When the rebrand was first announced.

Scandinavian homeware brand Søstrene Grene to open Swansea city centre store
The Danish variety retailer that opened next door to Flying Tiger in Swansea.

Carmarthen’s old Debenhams reborn as Atriwm — but opening pushed back to 2027
The slow-moving redevelopment of the former Debenhams anchor at St Catherine’s Walk.

TGJONES: Bailiff threat and tax debts cast fresh doubt over south-west Wales stores as WH Smith refuses to fund redundancy payments

The seven TGJones stores at risk across south-west Wales face fresh uncertainty after new details emerged about the dire financial state of the chain — including millions of pounds in unpaid taxes and a looming threat of bailiff action.

Seven branches in the region — including the Swansea Quadrant, Neath, Llanelli, Carmarthen, Bridgend, Tenby and Haverfordwest — were put at risk last week when owner Modella Capital announced plans to close up to 150 stores nationally as part of a major restructuring.

Now documents circulated to creditors have revealed that TGJones owes £8.4 million to HMRC, with a six-month payment agreement struck in April — and a further £3.4 million in business rates arrears. The Telegraph has reported that bailiffs are now a real threat if those payments are not maintained.

The revelations paint a stark picture of a business that has deteriorated rapidly since WH Smith sold its 480 high street stores to Modella Capital in March 2025 and rebranded them as TGJones.

The sale was originally valued at £76 million, but this was renegotiated sharply downward to £42 million to reflect what was described at the time as a “sharp deterioration in trading conditions.” In reality, WH Smith received just £10 million upfront, with the remaining £32 million contingent on the business’s future cash flows — money that now looks unlikely ever to materialise.

Modella has since approached WH Smith to ask whether it would fund enhanced redundancy payments for staff likely to lose their jobs if stores close. WH Smith had previously offered staff a more generous redundancy scheme than the statutory minimum. It declined to provide any further support.

The development is significant for workers at the seven south-west Wales branches, who now face the prospect of statutory redundancy only if their stores are among those confirmed for closure.

The restructuring Modella is planning is known as a “cram-down” — a relatively novel legal mechanism that requires the consent of only one class of creditors to proceed, rather than a majority. It will require approval from a High Court judge, with a hearing expected in late June.

Landlords are likely to face demands for severe reductions in rent as part of the plan. Those who refuse could simply take back the keys to their stores.

If the restructuring is approved, Modella has promised to invest £35 million in a turnaround plan it claims would return TGJones to profitability, with what it describes as a “considerable investment” in the stores that survive.

The creditor documents also reveal the existence of a mystery private individual — described as not being linked to Modella — who is owed £8 million by TGJones. No further details have been disclosed.

The crisis comes as Modella’s track record with other retail brands comes under scrutiny. Both The Original Factory Shop and Claire’s Accessories — two other chains acquired by the firm — have been placed into administration in recent months. Modella blamed the worsening conditions on the British high street and tax rises enacted by the Government.

An insolvency specialist quoted in earlier reporting warned that the pipeline of retail closures was “far from over,” pointing to the collapse in discretionary spending, stubbornly low high street footfall outside major city centres, and the impact of rising National Living Wage costs and higher employer National Insurance contributions.

Post Office has previously said it will update communities if any of its services — hosted within TGJones stores — are forced to relocate as a result of the closures.

The High Court hearing in late June is now the key date for anyone with an interest in the future of the south-west Wales stores — and for the staff who work in them.

Our TGJones coverage

Seven south-west Wales stores at risk as chain announces 150 closures
The full list of at-risk branches across the region.

Post Office promises to update communities if any branches are forced to relocate
What the closures could mean for Post Office services hosted within TGJones stores.

WH Smith sells high street stores — which will be renamed TGJones
How the chain ended up in Modella Capital’s hands in the first place.

TGJONES: Post Office promises to update communities if any branches are forced to relocate amid TGJones store closures

Post Office customers in south-west Wales who use services located inside their local TGJones have been reassured that they will continue to be able to do so – for now.

The statement comes after Swansea Bay News reported yesterday that up to 150 TGJones stores across the UK are facing closure under restructuring plans announced by the chain’s owner, Modella Capital.

Seven stores across south-west Wales are among those potentially affected, including the Quadrant Shopping Centre branch in Swansea and stores in Neath, Llanelli, Bridgend, Carmarthen, Tenby and Haverfordwest.

But many of those branches host an in-store Post Office – and readers immediately raised concerns about what would happen to those vital local services if the parent shops close.

Several readers contacted Swansea Bay News following the original report.

“They can’t possibly get rid of a post office. It serves as a bank for some people,” wrote one reader.

Others raised specific concerns about the Neath branch on Wind Street.

“Skewen has one post office, but we used to have three years ago,” said another reader. “Losing Neath post office would be unacceptable.”

“There’ll be no post office in Neath centre,” said another.

In response to these concerns, Swansea Bay News asked the Post Office press office to clarify the future of in-store branches if their TGJones host stores were to close.

A Post Office spokesperson said the network recognised the difficult conditions facing high street retailers, and confirmed it had no immediate plans to change services.

“We fully recognise the challenging trading conditions that TGJones and many other High Street retailers are facing at the moment,” the spokesperson said.

“We have a long-standing partnership and encourage customers to continue to access Post Office services and products from our branches located within TGJones stores.”

The Post Office said it would commit to keeping local communities informed of any future changes.

“Should there be any change to the store that hosts the Post Office, we will inform the local community as soon as we’re able to,” the spokesperson added.

The Post Office network operates more than 11,500 branches across the UK – many of them inside other businesses including newsagents, supermarkets and convenience stores.

The model has long been used to keep Post Office services accessible in towns and high streets where standalone branches would not be commercially viable.

But the model also creates a vulnerability – when the host business gets into difficulty, the Post Office service can be at risk too.

The Post Office’s statement will reassure customers that, for now, services will continue as normal at TGJones-hosted branches across south-west Wales.

But the position will become clearer once Modella Capital announces which specific TGJones stores will be closed under its restructuring plans – a decision that has not yet been made public.

The Post Office has confirmed the network has not been told which stores will close.

For now, customers in Swansea, Neath, Llanelli, Bridgend, Carmarthen, Tenby and Haverfordwest can continue to use their local in-store Post Office as normal.

Modella Capital, which also owns Hobbycraft and previously owned the now-collapsed Claire’s chain, is expected to confirm the full list of TGJones store closures in the coming weeks.

TGJONES: Seven south-west Wales stores at risk as chain announces 150 closures

Seven TGJones stores across south-west Wales are facing the chop.

Up to 150 stores nationwide are set to close under a major restructuring plan announced by the chain’s owner – with hundreds of jobs at risk.

The stores affected by the decision include some of the most familiar names on south-west Wales high streets:

• The Quadrant Shopping Centre, Swansea
• Wind Street, Neath
• Parc Trostre Retail Park, Llanelli
• The Rhiw, Bridgend
• Guildhall Square, Carmarthen
• High Street, Tenby
• Riverside Quay, Haverfordwest

It has not yet been confirmed which individual stores will close.

But the announcement leaves staff at all seven branches facing a nervous wait.

The chain – formerly WHSmith – operates 480 high street stores nationally, with 26 of them in Wales.

Private equity owner Modella Capital said the restructuring was an “essential part” of the company’s turnaround plan.

The firm bought the WHSmith high street business in March 2025 – a £40 million deal that did not include the WHSmith brand itself.

Stores were quickly rebranded under the new TGJones name – a name with no prior public recognition.

Modella Capital is now blaming that “forced” rebrand for damaging consumer awareness.

A spokesperson said the decision to close stores had 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,” they said.

The company also blamed rising operating costs “as a direct result of government policy” and recent “geopolitical events.”

“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,” the spokesperson added.

Modella Capital said no final decisions had yet been made about the impact on staff, and the company was aiming to preserve “as many jobs as possible.”

“We want to be clear, however, that the plan may result in the closure of some stores and the loss of some roles,” the spokesperson said.

The TGJones restructure comes hot on the heels of another high-profile Modella Capital collapse.

The private equity firm shut all 154 UK and Ireland Claire’s stores last month – putting around 1,300 staff out of work.

Modella Capital placed Claire’s into administration after what it called an “alarmingly” low Christmas trading period.

It has now committed more than £35 million for the TGJones restructuring effort.

For Swansea shoppers, the timing is grim.

The Quadrant store sits within a shopping centre already undergoing significant change. The Quadrant’s former Debenhams anchor unit was bought by Swansea Council after the chain’s collapse, stripped out, and recently sold to the centre’s new owners Centurion Group, with three major new tenants expected to be confirmed.

And Swansea’s flagship Marks & Spencer store on Oxford Street is due to close on 30 May – meaning the city centre will lose yet another major retailer in the same month TGJones announces its restructuring.

The Carmarthen store on Guildhall Square is similarly prominent in the town’s main retail area, while the Neath, Llanelli, Bridgend, Tenby and Haverfordwest branches all anchor parts of their respective high streets.

The full list of which TGJones stores will close is expected to be confirmed in the coming weeks.

WH Smith name to disappear from High Street after sale (BBC News)

The new owner has said it will keep the Toys "R" Us concessions and the 195 Post Office counters, but will rebrand the High Street chain as TGJones

https://www.bbc.co.uk/news/articles/cj3n3en7gppo

#business #retail #ModellaCapital #WHSmith #TGJones

WHSmith sells high street stores – which will be renamed TGJones

Modella Capital will take over WHSmith’s 480 high street stores and 5,000 staff.

As the deal does not include the WHSmith’s name, stores will be renamed TGJones, but will keep existing Toys-r-us and Post Office concessions.

Modella said it would be “business as usual” while it worked on changes to the chain including adding new ranges. 

Private investment group, Modella Capital also own high street stores, The Original Factory Shop and Hobbycraft. It has also previously put money into chains including Paperchase and Tie Rack.

The WHSmith brand will continue in its travel locations in airports and train stations as well as in hospitals. WHSmith’s say its travel locations make up the bulk of its sales and profits.

WHSmith will also continue to own its personalised greetings card business, funkypidgeon.com.

Carl Cowling, WHSmith’s Chief Executive, said:  “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on Travel.

“We have a highly successful Travel business, operating in fast growing markets in 32 countries and we are constantly innovating to deliver strong returns and meet our customers’ and partners’ needs. Our Travel business currently accounts for around 75% of the Group’s revenue and 85% of its trading profit.

“As our Travel business has grown, our UK High Street business has become a much smaller part of the WHSmith Group. High Street is a good business; it is profitable and cash generative with an experienced and high-performing management team. However, given our rapid international growth, now is the right time for a new owner to take the High Street business forward and for the WHSmith leadership team to focus exclusively on our Travel business. I wish the High Street team every success.”

#Business #Hobbycraft #ModellaCapital #OriginalFactoryShop #retail #TGJones #WHSmith