Key Takeaways
- • Modella Capital plans to close up to 150 stores (approximately one-third of its portfolio) at TG Jones, the rebranded former WH Smith High Street business acquired for £40 million in 2025, putting hundreds of jobs at risk among its 5,000-person workforce.
- • The private equity firm has accumulated a troubling track record across its five major retail acquisitions: 300 stores already closed, 2,500+ jobs lost, and two recent administrations (Claire's Accessories and The Original Factory Shop) within months of acquisition in early 2026.
- • Modella Capital, founded August 2022 and chaired by restructuring veteran Steve Curtis (former Boots executive), has rapidly scaled to control over 900 stores employing more than 10,000 people but faces mounting criticism from labor unions and stakeholders over execution and operational viability.
- • The firm cited the "forced" name change from WH Smith to TG Jones as a significant operational challenge that negatively impacted brand awareness and customer retention, contributing to financial underperformance.
- • GMB union leadership characterized the restructuring as a "retail bloodbath," pointing to Modella's pattern of failed turnarounds and warning that the High Street is bearing the cost of "failed boardroom experiments."
Summary
Modella Capital, a private equity firm founded in August 2022, is preparing to close up to 150 stores at TG Jones—the rebranded High Street business of former WH Smith operations acquired for £40 million in 2025—in what union representatives have termed a "retail bloodbath." The closures represent approximately one-third of the chain's current footprint and will result in significant job losses among TG Jones's 5,000-person workforce, though the firm has not disclosed exact redundancy figures.
The proposed restructuring marks the latest setback in Modella Capital's aggressive retail consolidation strategy. Since its founding, the firm has acquired five major retail brands controlling more than 900 stores and employing over 10,000 workers. However, execution has faltered considerably: 300 stores have already closed, more than 2,500 jobs have been eliminated, and two significant portfolio companies—Claire's Accessories and The Original Factory Shop—entered administration in early 2026 just months after acquisition. Hobbycraft, another Modella-owned chain, also underwent restructuring, with 18 of its 124 stores shuttered and 126 jobs lost in 2025.
Modella attributed TG Jones's operational difficulties partly to the "forced" rebranding from WH Smith, contending that the name change eroded public brand recognition and customer awareness. The firm stated that "the decision has not been taken lightly" and emphasized that "the survival of this iconic 234-year-old business is our imperative," framing the closures as necessary for long-term viability rather than financial engineering.
Charlotte Brumpton-Childs, national secretary of the GMB union, criticized Modella's operational record, stating: "After the collapse of Claire's and The Original Factory Shop, Modella Capital is once again presiding over chaos on the high street." The union characterized the closures as symptomatic of flawed acquisition strategy and warned that "communities are paying the price for failed boardroom experiments."
The TG Jones restructuring underscores challenges facing private equity-backed turnarounds in traditional retail, where rapid ownership transitions, rebranding initiatives, and aggressive cost-reduction strategies have struggled to offset structural headwinds in physical retail footfall and consumer behavior.
The proposed restructuring marks the latest setback in Modella Capital's aggressive retail consolidation strategy. Since its founding, the firm has acquired five major retail brands controlling more than 900 stores and employing over 10,000 workers. However, execution has faltered considerably: 300 stores have already closed, more than 2,500 jobs have been eliminated, and two significant portfolio companies—Claire's Accessories and The Original Factory Shop—entered administration in early 2026 just months after acquisition. Hobbycraft, another Modella-owned chain, also underwent restructuring, with 18 of its 124 stores shuttered and 126 jobs lost in 2025.
Modella attributed TG Jones's operational difficulties partly to the "forced" rebranding from WH Smith, contending that the name change eroded public brand recognition and customer awareness. The firm stated that "the decision has not been taken lightly" and emphasized that "the survival of this iconic 234-year-old business is our imperative," framing the closures as necessary for long-term viability rather than financial engineering.
Charlotte Brumpton-Childs, national secretary of the GMB union, criticized Modella's operational record, stating: "After the collapse of Claire's and The Original Factory Shop, Modella Capital is once again presiding over chaos on the high street." The union characterized the closures as symptomatic of flawed acquisition strategy and warned that "communities are paying the price for failed boardroom experiments."
The TG Jones restructuring underscores challenges facing private equity-backed turnarounds in traditional retail, where rapid ownership transitions, rebranding initiatives, and aggressive cost-reduction strategies have struggled to offset structural headwinds in physical retail footfall and consumer behavior.
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