Modella Capital bought the 480-store chain for £76m last year, but has now blamed weak consumer spending and having to drop the WHSmith name for the sweeping rent reductions and closures. The plan includes the closure of up to 150 stores, rent-free terms on around 100 stores, and cuts of 15–75% elsewhere – a move that will significantly reduce income for landlords.

In truth, even before this latest restructuring plan, many TG Jones stores are already on concessionary rents yet are still proving unviable, reflecting a longer-term loss of relevance with UK shoppers. This is despite attempts by Modella to bring in concessions for their other brands such as Toys R Us and Hobby Craft to create diversity of offer.

Years of under-investment has gradually been eroding confidence in the business, prompting many landlords to proactively start seeking new tenants – a key example being the former WHSmith unit on Market Street, Manchester, which we secured on behalf of our client EE more than a year ago, after positive discussions with the landlord and their agents.

Frustration remains high about how the estate has been handled since Modella’s acquisition, and the effect this will have on high streets and shopping centres nationwide. The future of the Post Office network – many of which are located within TG Jones stores – also remains a key concern for landlords and local communities, owing to their ability to consistently drive regular, local visits to high streets.

Yet there is real opportunity amid the disruption. As retail activity refocuses, brands such as Waterstones and The Entertainer stand to benefit from the potential loss of a long-standing competitor.

Across our shopping centre instructions, we’re already in active talks on several TG Jones stores, with strong interest from both national and regional occupiers seeking flexible, right-sized space.

The portfolio includes many well-located units in prime town centres which are ideal for modern retail or alternative uses, offering genuine expansion opportunities for growing retail brands – and we’ll be looking closely at a number of them for our expansionary clients.

The real challenge – as ever – lies in smaller more tertiary locations, where dividing units may not be viable, and refurbishment and service charge costs are likely to fall back on landlords.

Change always brings complexity, but also action. Here at FMX we’re firm believers that for agile landlords and occupiers willing to invest and adapt, the restructuring of legacy retail portfolios continues to unlock opportunity on the UK high street.

TG Jones Restructuring