Private equity firm Modella Capital is planning to close up to 80 former WHSmith stores as part of a major restructuring of its stationery chain, rebranded as TG Jones last year. The firm has appointed Teneo to assess options for boosting profitability at the 233-year-old business, which operates 480 stores nationwide.

About 2,000 jobs could be lost in the closures, though final numbers depend on negotiations with landlords over rent. The move follows the collapse of two other Modella-owned retailers - Claire's Accessories and The Original Factory Shop - which together closed 300 stores and eliminated over 2,000 positions this year.

Modella acquired WHSmith's high street business for £40 million last year, transforming from an empty shell into an investment firm controlling retailers with 10,000+ employees. The company has already spent £14 million refurbishing TG Jones stores to create community hubs offering books, crafts, banking and postal services. CEO Sean Toal stepped down after less than a year, replaced by Alex Willson from HobbyCraft.