Revealed: owner of former WH Smith stores is charging fee to use fictitious ‘family’ brand

The royalty deal emerged in a document about a restructure under which some TG Jones stores could close and rents be slashed on dozens more. Photograph: Antonio Olmos/The Guardian

The investment company that owns the former WH Smith high street stores is charging the retailer millions of pounds in licence fees for the right to use its widely derided TG Jones name, the Guardian can reveal.

Modella Capital, which bought the chain from WH Smith’s parent company last year, on Wednesday blamed weak consumer spending as it laid out a restructuring plan that could shut 150 of its 450 shops. It also said “the forced name change from WH Smith has also negatively impacted consumer awareness”.