The UK high street is facing another major shake-up as reports reveal that up to 150 former WHSmith stores could close under a sweeping restructuring plan by their new owner, TG Jones. The development has sparked concern among employees, landlords, shoppers, and retail analysts who fear another blow to already struggling town centres across Britain.
The news comes less than a year after investment firm Modella Capital acquired WHSmith’s high street business and rebranded stores as TG Jones. What was once seen as a fresh start for one of Britain’s oldest retail names is now turning into a fight for survival.
According to multiple reports published on May 6, 2026, the retailer is preparing an aggressive restructuring strategy that could lead to the closure of more than a quarter of its UK stores.
Source of News and Time
The story was widely reported on Wednesday, May 6, 2026.
Key sources include:
- The Guardian — Published May 6, 2026
- Financial Times — Published May 6, 2026
- City AM — Published May 6, 2026
- The Sun — Published May 6, 2026
Why Are Former WHSmith Stores Closing?
The closures are part of a broader rescue effort designed to prevent the newly branded TG Jones chain from collapsing under mounting financial pressure.
Modella Capital, the investment firm that bought WHSmith’s high street arm in 2025, says the business has continued to struggle amid:
- Weak consumer spending
- Rising operational costs
- Cost-of-living pressures
- Inflationary challenges
- Reduced footfall on UK high streets
- Poor brand recognition after the WHSmith name disappeared
The company reportedly believes that maintaining nearly 480 high street locations is no longer financially sustainable.
Retail insiders suggest the restructuring had been expected for months. Sources close to the situation claim the long-term goal was always to slim the estate down significantly once takeover restrictions expired.
From WHSmith to TG Jones: What Happened?
To understand the current crisis, it’s important to look at how WHSmith’s high street business changed hands.
In 2025, WHSmith decided to sell its traditional high street division to focus on its more profitable travel retail operations located in airports, train stations, hospitals, and motorway service stations.
The high street chain, consisting of roughly 480 stores, was sold to Modella Capital in a deal worth around £76 million.
Following the sale:
- WHSmith travel stores remained under WHSmith ownership
- High street stores were rebranded as TG Jones
- Post Office branches and Toys “R” Us concessions were largely retained
- Thousands of employees transferred to the new ownership structure
The decision to rename the stores surprised many customers. The TG Jones branding attempted to maintain a similar traditional British identity, but shoppers struggled to connect with the new name.
Retail experts now believe the rebrand may have damaged customer loyalty more than expected.
How Many Stores Could Close?
Reports suggest that as many as 150 stores may ultimately shut.
Early plans reportedly include:
- Immediate closure of eight stores
- Rent holidays requested for approximately 100 locations
- Major rent reductions proposed for hundreds of additional branches
If landlords refuse revised terms, more closures could follow.
The restructuring process is expected to involve:
- Creditor approval
- Court oversight
- Negotiations with landlords
- Additional investment from Modella Capital
The company says it will inject around £35 million into the business as part of the turnaround strategy.
Thousands of Jobs at Risk
One of the biggest concerns surrounding the closures is the potential impact on employment.
The former WHSmith high street business reportedly employs around 5,000 staff members across the UK.
While the exact number of job losses remains unclear, retail analysts warn that:
- Store closures will inevitably lead to redundancies
- Town centres dependent on anchor retailers could suffer economically
- Smaller nearby businesses may experience reduced foot traffic
Many communities still rely heavily on these stores for:
- Stationery
- Books and magazines
- Post Office access
- School supplies
- Greeting cards
- Convenience shopping
In smaller towns, the closure of even one major retailer can significantly affect local shopping habits.
Why UK High Streets Continue to Struggle
The challenges facing TG Jones are not unique.
Britain’s high streets have been under pressure for years due to changing consumer habits and economic uncertainty.
Several factors continue to reshape UK retail:
1. Online Shopping Growth
Consumers increasingly buy books, stationery, cards, and gifts online rather than visiting physical stores.
Retail giants like Amazon have transformed customer expectations around price and convenience.
2. Rising Operating Costs
Retailers face growing costs linked to:
- Energy bills
- Business rates
- Rent
- National insurance contributions
- Wage increases
Physical stores have become far more expensive to operate.
3. Declining Town Centre Footfall
Many UK town centres continue to see reduced visitor numbers since the pandemic era.
Remote working has also changed shopping patterns, with fewer commuters visiting high street shops regularly.
4. Inflation and Consumer Pressure
The ongoing cost-of-living crisis has made shoppers more cautious with spending.
Non-essential purchases such as books, magazines, and gifts are often among the first categories consumers cut back on.
The Branding Problem: Did Losing the WHSmith Name Hurt Sales?
One of the more surprising admissions from TG Jones is that abandoning the WHSmith brand negatively impacted trade.
WHSmith had more than 230 years of brand recognition in the UK.
Even though many consumers criticised WHSmith stores in recent years for outdated interiors and high prices, the brand still held strong public familiarity.
The switch to TG Jones appears to have created confusion among shoppers.
Many customers reportedly:
- Did not recognise the new chain
- Assumed stores had permanently closed
- Failed to understand the relationship to WHSmith
- Reduced impulse visits
Brand loyalty remains incredibly important in retail, particularly among older shoppers who formed decades-long habits around familiar chains.
Could More Retail Chains Follow?
Retail analysts warn that TG Jones may not be the last major retailer facing difficult decisions in 2026.
The UK retail sector remains under intense pressure, especially among mid-market chains operating large physical estates.
Several household names have already undergone restructuring in recent years, including:
- Debenhams
- Wilko
- Paperchase
- House of Fraser
- The Body Shop
- Ted Baker
Some chains survived through downsizing or online transitions, while others disappeared entirely from the high street.
The closure threat facing former WHSmith stores highlights how fragile traditional retail models have become.
What Happens Next?
The future of TG Jones now depends heavily on negotiations with landlords and creditors.
Possible outcomes include:
Scenario 1: Successful Restructuring
If landlords agree to revised rent deals and creditors approve the restructuring plan, the chain could survive in a smaller format.
This would likely mean:
- Around 300–350 remaining stores
- Streamlined operations
- Increased focus on profitable locations
Scenario 2: Wider Store Closures
If negotiations fail, further closures could accelerate quickly.
Retail experts warn that unprofitable stores are unlikely to survive without significant concessions.
Scenario 3: Administration Risk
Some analysts believe administration remains possible if the turnaround strategy fails to stabilise losses.
That outcome could place thousands more jobs at risk.
Are WHSmith Travel Stores Affected?
Importantly, WHSmith travel stores are not part of the restructuring.
The original WHSmith company retained its travel retail division when the high street business was sold.
That means WHSmith-branded stores in:
- Airports
- Train stations
- Hospitals
- Service stations
continue to operate separately and are unaffected by TG Jones’ financial struggles.
Travel retail has become significantly more profitable for WHSmith in recent years, especially as international travel recovered.
Public Reaction to the Closures
The potential closures have sparked strong reactions online and across the retail industry.
Many shoppers expressed sadness at seeing another historic British retailer struggle, while others argued that WHSmith’s traditional store model had become outdated.
Common customer criticisms over recent years included:
- Expensive pricing
- Tired store layouts
- Limited product innovation
- Poor shopping experience
However, many consumers also noted the convenience and familiarity of local branches, especially in smaller towns where alternatives are limited.
Retail experts say the emotional attachment people still feel toward longstanding British chains demonstrates the continuing cultural importance of the high street.
What This Means for Local Communities
The closure of up to 150 former WHSmith stores could affect far more than retail alone.
High street stores often act as anchor businesses that support surrounding shops and services.
When a major retailer closes:
- Nearby foot traffic often declines
- Smaller businesses lose customers
- Vacant units increase
- Town centre confidence weakens
Communities with limited shopping infrastructure may be particularly vulnerable.
Some towns could also lose important Post Office access points if associated branches close alongside stores.
Can UK High Streets Recover?
The future of Britain’s high streets remains one of the biggest debates in retail and economic policy.
Some experts believe successful high streets of the future will focus more on:
- Experiences
- Hospitality
- Independent retailers
- Convenience services
- Community hubs
Others argue traditional retail still has a role, but only in smaller, more efficient formats.
For chains like TG Jones, survival may depend on adapting quickly to changing consumer behaviour while reducing operational costs.
Lessons From the WHSmith Situation
The rapid decline of the former WHSmith high street business offers several important lessons for the wider retail sector.
Brand Identity Matters
Consumers often underestimate how attached they are to familiar brands until they disappear.
The WHSmith name carried decades of trust and recognition that proved difficult to replace.
Large Store Estates Are Risky
Running hundreds of physical stores has become increasingly difficult in the digital era.
Retailers must balance convenience with profitability.
Retail Is Changing Faster Than Ever
Customer expectations around value, speed, and experience continue to evolve rapidly.
Businesses unable to adapt face mounting pressure.
Could Some Stores Be Saved?
There is still a possibility that fewer than 150 stores ultimately close.
Much depends on:
- Landlord negotiations
- Consumer spending trends
- Court approval
- Operational restructuring success
Some branches in stronger retail locations may continue trading successfully under the TG Jones brand.
Others may eventually be converted into different retail formats or occupied by entirely new businesses.
Final Thoughts
The announcement that up to 150 former WHSmith high street stores may close marks another major turning point for British retail.
What began as a bold rebrand under TG Jones has quickly evolved into a struggle for survival amid weak consumer confidence, rising costs, and ongoing high street decline.
For thousands of employees, local communities, and loyal shoppers, the coming months will be filled with uncertainty.
At the same time, the situation reflects broader challenges affecting retailers across the UK in 2026.
Whether TG Jones can successfully reinvent itself remains to be seen, but one thing is clear: Britain’s high street continues to undergo dramatic transformation.
As negotiations unfold and restructuring plans move forward, many will be watching closely to see whether this historic retail business can avoid becoming another casualty of the changing shopping landscape.
