The chief executive of TGJones is leaving less than a year after the sale of the renamed WHSmith high street division, Retail Week can reveal.
Sean Toal, a WHSmith director for six years who remained with the high street arm to lead it following its sale to investor Modella last March, is now departing.
Toal is being succeeded next month by Alex Willson, chief executive of Modella stablemate Hobbycraft.
Modella said that Toal told them in December that he had made “a personal decision to leave the business” and that under his leadership “the new TGJones brand has been established and the business successfully separated from WHSmith”.
Modella Capital managing director Joseph Price told Retail Week: “I am delighted that Alex will be CEO of TGJones. He has been a great success at Hobbycraft and we look forward to him building on the foundations established at TGJones by Sean and his team. TGJones is a business Modella is proud to own and one which we believe has great potential.
“I would like to thank Sean for his work at TGJones. He has played a critical role in setting a direction for the business as an independent brand. We are very grateful for his contribution and extend our best wishes for the future.”
Modella aims to turn TGJones into a “hub of the high street”, driving footfall by catering for a range of customer missions, such as Post Offices, alongside its own books and stationery proposition, and with in-store partners such as Toys R Us.
However, Toal’s departure so soon after the deal is likely to prompt nervousness about how TGJones is weathering tough conditions on the high street.
As a private business, TGJones has not provided an update on trading over Christmas. However, Hobbycraft – which is thought to have recently received takeover interest – reported that in the six weeks to December 28, total revenue increased 6.3% year on year. Two other Modella-backed retailers, accessories specialist Claire’s and The Original Factory Shop, have fallen into administration since the new year.
WHSmith decided to sell its high street business to focus on its faster-growing travel arm. WHSmith said at the time the deal was announced that the high street operation was profitable and cash-generative, and employed around 5,000 people in 480 stores.
The division was rebranded as TGJones because WHSmith continues to operate its eponymous fascia in many UK travel locations as well as internationally.
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