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TGJONES: Rescue plan approved — seven south-west Wales stores now wait on landlord rent deals as up to 150 closures loom

The rescue plan that could close up to 150 TGJones stores has been approved by the High Court — leaving seven south-west Wales branches waiting to learn their fate.

Branches at Swansea’s Quadrant Shopping Centre, Carmarthen’s Guildhall Square, Llanelli, Neath, Bridgend, Tenby and Haverfordwest were all named as potentially at risk when the closures were announced in May.

None of the seven has been confirmed for closure — and each store’s future now hinges largely on its landlord. Under the approved plan, rents will be cut by between 15% and 75% on hundreds of stores, while around 120 landlords will receive no rent at all for up to three years.

Landlords who refuse the new terms can end their leases instead — and that is where most of the closures are expected to fall.

In Swansea, that puts the decision in the hands of Centurion Group — the Quadrant’s owner, which is separately preparing to name new tenants for the former Debenhams in the city.

Mr Justice Hildyard approved the plan on Wednesday (1 July), describing it as complex and far-reaching. He said his biggest concern had been the financial hit to landlords, but he was persuaded the rescue was, objectively, the lesser of two evils.

The approval caps a turbulent few weeks in which landlords revolted over the plan and bailiffs reclaimed a Midlands store. Property giant British Land had branded the proposals fundamentally unfair, before dropping its opposition after winning concessions.

The court heard the retailer was on the brink of insolvency, facing a cash shortfall of nearly £8 million within days if the deal was not approved.

Tom Smith KC, for TGJones, told the hearing the business was “highly distressed” and “running on fumes at the moment”.

He said the chain would have run out of cash in April, had it not been for a £10 million loan from owner Modella Capital and the deferral of liabilities — including the £8.4 million owed to HMRC revealed in creditor documents in May.

The approved plan brings a further £15 million loan from Modella, alongside the rent cuts and redundancies across stores and the company’s support centre.

Up to 150 of the chain’s 451 stores are expected to close, with the plan forecasting the business will be left with around 302 — depending on how many landlords walk away rather than accept lower rents.

The chain employs 4,700 people, and hundreds of jobs are expected to go, though no redundancy figure has been confirmed. WH Smith has already refused to fund enhanced redundancy payments for staff who lose their jobs — leaving those affected facing the statutory minimum.

The stakes reach beyond the shops themselves: the Quadrant, Neath and Carmarthen branches all host Post Office counters, a threat that prompted the Deputy First Minister to write to the chain over the Neath branch in May.

The Post Office and Toys R Us, which runs concessions inside some stores, both supported the restructuring in court.

Modella — which rebranded the stores from WHSmith after buying the high street business last year — admitted last month the retailer was almost completely broken, blaming years of under-investment by the previous owner and the loss of the 234-year-old name, which was a condition of the sale.

Chief executive Alex Willson welcomed the ruling, saying: “This decision allows us to move ahead with our turnaround strategy.”

Wales has 26 of the chain’s stores, and the south-west Wales branches anchor some of the most prominent pitches on their high streets — the entrance to the Quadrant in Swansea and Guildhall Square in Carmarthen among them.

The wait comes with the region’s high streets already under pressure — Llanelli, Neath and Swansea are among the towns watching Shoe Zone review its local stores, and Swansea’s flagship M&S closed in May.

WHSmith itself lives on at airports and railway stations, where the travel stores kept the historic name.

Related stories from Swansea Bay News

Seven south-west Wales stores at risk as chain announces 150 closures
The full list of at-risk branches across the region, from Swansea’s Quadrant to Haverfordwest.

Bailiff threat and tax debts cast fresh doubt over south-west Wales stores
TGJones owes £8.4m to HMRC as WH Smith refuses to fund enhanced redundancy for at-risk staff.

Deputy First Minister raises alarm over Neath Post Office threat
Sioned Williams MS wrote to TGJones over the Post Office counter hosted in the at-risk Neath branch.

Landlords revolt and bailiffs reclaim a Midlands store
How the restructuring battle turned bitter in the weeks before the court ruling.

#administration #Bridgend #Carmarthen #CenturionGroup #featured #Haverfordwest #HighCourt #HMRC #Llanelli #ModellaCapital #Neath #PostOffice #QuadrantShoppingCentre #redundancy #retail #storeClosure #Swansea #SwanseaQuadrant #Tenby #TGJones #WHSmith

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.

#administration #Carmarthen #featured #HMRC #ModellaCapital #Neath #QuadrantShoppingCentre #redundancy #Swansea #SwanseaQuadrant #TGJones #WHSmith

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.

The TGJones store inside the Quadrant Shopping Centre — formerly trading as WHSmith. The chain was rebranded by new owner Modella Capital after a £40 million deal in March 2025. Picture: Swansea Bay News

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.

#administration #Bridgend #Carmarthen #Haverfordwest #Llanelli #ModellaCapital #Neath #retail #storeClosure #Swansea #Tenby #TGJones #WHSmith