High street crisis deepens as TG Jones faces store closures under private equity
High street stationer TG Jones could shut dozens of stores as falling consumer spending hits sales. The chain, bought last year by Modella—owner of Hobbycraft—now faces an uncertain future. Its struggles highlight wider challenges for retailers under private equity ownership. TG Jones is not the only well-known name in trouble. Supermarkets Morrisons and Asda have also lost ground since being taken over by private equity firms in 2021. Both chains have battled heavy debt and weaker pricing power compared to rivals.
Meanwhile, discount supermarkets Aldi and Lidl have expanded rapidly. Their market shares now stand at over 11% and 8% respectively. This growth has pressured established chains like Sainsbury’s, which has responded by cutting prices to win back shoppers. Tesco has also gained share by focusing on affordability.
Private equity is often called the 'buyer of last resort' for struggling listed companies. Owners argue they can make faster, bolder decisions without public market pressures. But critics point to risks: a focus on short-term profits can leave customers, staff, suppliers, and landlords worse off. The fate of TG Jones will depend on whether Modella can turn its fortunes around. For supermarkets, the battle for shoppers continues as discounters reshape the market. Private equity’s role in retail remains controversial, with outcomes varying sharply between success and collapse.
