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.

「再見史密夫先生。👋」

#WHSmith #TGJones

Familiar retail name set to disappear from Lichfield shopping scene as plans for new branding are drawn up

https://lichfieldlive.co.uk/2025/06/05/familiar-retail-name-set-to-disappear-from-lichfield-shopping-scene-as-plans-for-new-branding-are-drawn-up/

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

First there was 'Alias Smith & Jones'

Then came 'Alas Smith & Jones'

What's next? 'Aka Smith & Jones'?

#Marketing #BrandingFails
#TGJones #WHSmith
https://www.theguardian.com/business/2025/mar/28/what-does-wh-smith-new-high-street-name-tgjones-actually-mean-modella

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

##WHSmith becomes #TGJones - that's just adding insult to injury. In the same format, they could have called it #WTFuck.

https://www.theguardian.com/business/2025/mar/28/wh-smith-brand-to-disappear-as-76m-sale-of-stores-to-modella-agreed