150 Former WHSmith Stores to Close as UK Retail Sector Data Shows 119,222 Insolvencies
Up to 150 of the 480 High Street stores formerly part of the WHSmith business will be closed in a restructuring plan launched by private equity firm Modella Capital, according to BBC Business[1]. The closure announcement affects stores now operating under the TGJones brand, following their purchase and rebrand last year.
The scale of these closures reflects broader pressures facing UK retail, where CompanyPulse data[2] shows 119,222 companies across various forms of insolvency proceedings - including 109,532 in liquidation, 5,184 in administration, 3,991 in voluntary arrangements, and 515 in receivership.
The WHSmith-to-TGJones Transformation
WHSmith agreed the sale of its high street business in March 2025, with the aim of focusing solely on its shops in travel locations like airports and stations[1]. The £40 million deal did not include the WHSmith brand name, leading to the stores being rebranded as TGJones under new owner Modella Capital.
A Modella Capital spokesperson told the BBC that "TGJones has experienced highly challenging trading conditions over the past year, along with many other brick-and-mortar retailers"[1]. The private equity firm attributed the challenges partly to the "forced" name change, which it said negatively impacted public awareness of the brand, as well as rising operating costs "as a direct result of government policy" and recent "geopolitical events".
Hundreds of jobs are at risk through the restructure, though Modella Capital said it aims to preserve "as many jobs as possible"[1]. The spokesperson acknowledged: "We want to be clear, however, that the plan may result in the closure of some stores and the loss of some roles."
Retail Sector Activity Shows Mixed Signals
Despite the high-profile closures, CompanyPulse company register data[2] reveals continued new business formation across the UK economy. In the past week alone, 13,699 new companies were incorporated across all UK sectors. Daily incorporation data for recent weeks shows significant variation, with 4,221 companies registered on 27 April 2026 and 4,192 on 5 May 2026.
The retail landscape is dominated by online operations, with 205,517 companies classified under "Retail sale via mail order houses or via Internet" (SIC code 47910)[2]. This represents the largest retail subsector by company count, highlighting the ongoing shift from physical to digital commerce.
Traditional high street retail categories show smaller numbers: take-away food shops and mobile food stands account for 84,422 companies[2]. The data underscores how newer business models have overtaken traditional retail formats in terms of company registrations.
Modella Capital's Troubled Retail Portfolio
The TGJones restructure comes after another Modella Capital retail brand ceased operations entirely. Claire's stopped trading last month, closing all 154 standalone stores and making 1,300 staff redundant[1]. Modella Capital had purchased Claire's in September 2025 after the business fell into administration, but later placed the jewellery and accessories chain into administration itself after what it described as an "alarmingly" low Christmas trading period.
Modella Capital also owns Hobbycraft[1], adding to its portfolio of UK retail brands facing challenging market conditions.
Wider Context: UK Business Health
The CompanyPulse register[2] tracks 5,820,924 total UK companies as of the latest data, of which 5,537,121 are currently active. The insolvency figures - representing roughly 2% of all registered companies - provide context for understanding the scale of business distress across the economy.
Liquidation remains the most common form of insolvency, accounting for 109,532 cases or 92% of all insolvency proceedings[2]. Administration, often used for larger businesses seeking to restructure while continuing operations, accounts for 5,184 cases.
The restructuring plan for TGJones 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," according to Modella Capital[1]. With 480 stores in the portfolio and up to 150 facing closure, the plan would preserve approximately 330 locations if fully implemented.
As traditional retailers continue to adapt to changing consumer behaviour and economic pressures, the fate of these former WHSmith stores illustrates the ongoing transformation of the UK high street. The combination of rebranding challenges, rising costs, and broader economic headwinds has created a difficult environment for physical retail, even as new businesses continue to enter the market through different channels and formats.