Dozens of former WH Smith stores face closure, putting thousands of jobs at risk

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. Eight of the chain’s remaining 450 stores will close immediately, while Modella is demanding 100% rent holidays on about 100 more, as first reported by The Telegraph. The company also wants 5% rent reductions on hundreds more stores for a year, with cuts of between 15% and 75% beyond that period, according to a document seen by the Guardian. If landlords refuse the rent holidays and cuts, the stores could shut. When Modella acquired the chain – which employs 5,000 staff – the shops were renamed under the fictitious “family” brand name of TG Jones, ending 233 years of the WH Smith name on the British high street. On Wednesday, Modella said rising costs and geopolitical events had also contributed to TG Jones remaining lossmaking, while admitting that the name change had also hit trade. The restructuring plan must be approved by a vote from creditors and through a court process. A TG Jones spokesperson said: “This decision has not been taken lightly. …