The High Court has given the green light to a company voluntary arrangement (CVA) for the retail group that owns the former WH Smith and TG Jones stores, paving the way for the closure of 150 outlets. The decision, handed down on Wednesday, is expected to result in significant job losses across the UK, with estimates suggesting up to 2,500 employees could be affected.
Details of the Restructure
The CVA, proposed by the struggling retailer, allows it to exit unprofitable leases and restructure its debt. The 150 stores earmarked for closure are among the 500 sites acquired from WH Smith and TG Jones in 2023. The group had been grappling with rising costs and changing consumer habits, which have hit high street retailers hard.
According to court documents, the restructure is necessary to secure the future of the remaining 350 stores. The retailer’s management argued that without the CVA, the entire business would face administration, putting all 7,000 jobs at risk.
Impact on Staff and Communities
Union representatives expressed dismay at the decision, calling for greater support for affected workers. “This is a devastating blow for the employees and the communities that rely on these stores,” said a spokesperson for the Union of Shop, Distributive and Allied Workers (Usdaw). “We urge the company to provide comprehensive redundancy packages and retraining opportunities.”
The closures will be phased over the next six months, with the first wave expected to begin in August. Local councils in areas with affected stores have been notified, and efforts are underway to attract new businesses to fill the vacant units.
Broader Retail Context
The High Court’s approval comes amid a challenging period for UK retail. According to the British Retail Consortium, footfall on high streets has declined by 15% over the past year, while online sales now account for 40% of total retail spending. Industry analysts warn that more store closures are likely as retailers continue to adapt to the post-pandemic landscape.
“This is part of a wider trend of consolidation on the high street,” said retail analyst Sarah Johnson of GlobalData. “Retailers are having to make tough decisions to stay afloat, and unfortunately, that often means closing physical stores.”
Company Statement
In a statement, the retailer’s CEO said: “We are grateful to the court for its approval, which allows us to restructure and protect the majority of our stores and jobs. This was a difficult but necessary step to ensure the long-term viability of the business.”
The company confirmed that it will work closely with staff representatives to manage the redundancies and support those affected. It also pledged to invest in the remaining stores, with a focus on improving the customer experience and expanding online operations.
