The owner of TG Jones has called on advisers to draw up a restructuring plan in a bid to put the retailer on stronger footing, but that could put around 80 stores at risk, according to reports.
The Telegraph said that Modella Capital was in talks with Teneo over a plan for the chain, formerly WH Smith’s high street shops that it took control of last year.
Reports said that around 80 TG Jones stores, out of its chain of more than 450, were most at risk following a period of weaker trading.
WH Smith sold its high street stores to Modella last year, but held onto its travel shops, including in airports and train stations, which was the more profitable part of the business.
The deal valued the high street chain at around £76 million and resulted in it being rebranded to TG Jones.
Meanwhile, Modella recently said it was putting Claire’s Accessories and The Original Factory Shop into administration following “last-ditch attempts to rescue them”.
The company, which specialises in retail investment and has become a significant name within the industry, said neither firms have a realistic chance of being profitable again and blamed a challenging climate on the high street for the financial troubles.
The administrations put some 1,355 employees in Claire’s UK and Ireland shops and around 1,220 staff across The Original Factory Shop at risk.
Reports said that a store closure programme was one option for TG Jones, but that Teneo was considering alternative measures including asking WH Smith for financial support, and that no final decisions had been made.
Modella has been contacted for comment.
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