WH SMITH

The takeover of WH Smith shops by Modella Capital, rebranded as TG Jones, has led to rapid closures of dozens of branches and plans to shut up to 150 stores, putting around 70 local post offices at risk by early 2027. The move accelerates the decline of printed newspapers and magazines by removing retail browsing points that introduce readers to niche titles, while critics say private-equity restructuring prioritises short-term gains over cultural and community value. The author warns the loss of physical magazine discovery will narrow cultural diversity and worsen reliance on algorithm-driven content discovery. » More on theguardian.com

A high court has approved TG Jones’s restructuring plan, enabling the private equity-owned retailer to close up to 150 of its circa 450 stores as part of a turnaround. The plan, backed by key landlord classes and Modella Capital, includes steep rent cuts for many landlords and writing off at least half of debts owed to small suppliers. TG Jones says the move will protect the core estate and make the business more sustainable, though thousands of jobs and many creditor claims will be affected. » More on theguardian.com

WH Smith shares fell about 15.4% to 416.6p and hit an intraday 52‑week low after a second profit warning this year and the announcement of a capital raise. The company cut pre‑tax profit guidance for the year ending 31 August to £75–90m (previously £90–105m) and will issue up to around 26m new ordinary shares (about 20% of the capital) to raise financing. The Executive Chair and Group CFO have committed to subscribe for a combined c. £1.725m; the measure is intended to reduce leverage to around two times by the end of FY2026. Management cited deteriorating trading conditions, geopolitical instability and weaker consumer confidence with lower travel demand as reasons for the forecast revision. » More on de.investing.com