Global retail group TFG, owner of popular fashion brands Phase Eight, Hobbs, Whistles, and White Stuff, is planning a significant restructuring that could result in the closure of up to 400 stores worldwide. This comes as part of the company’s strategy to improve profitability amid challenging market conditions.
Already committed to closing over 100 underperforming stores this year, TFG is now evaluating the potential shutdown of additional locations across its international portfolio. The company operates stores in key cities including Birmingham, and the closures could impact stores globally.
TFG emphasized it will “accelerate right-sizing” of Phase Eight’s store network over the next 12 months but did not specify the exact number or locations of stores under review. Phase Eight’s performance has been adversely affected by the decline of department stores and tougher trading environments in London and Australia.
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Despite these challenges, TFG reported a 29.4% increase in sales to £488 million for the year ending March 31, buoyed by the recent acquisition of White Stuff.
CEO Anthony Thunström told The Sunday Times that the group identified 300 underperforming stores internationally but views closures as a last resort, preferring to exhaust other options to improve store performance first.
“FY26 was a challenging year, with weaker consumer demand and margin pressures impacting our profitability,” Thunström said. “While these factors were outside our control, our response was decisive. We reduced costs, managed inventory carefully, preserved cash, and reinforced the resilience of our business.”
He added that significant investments have been made to develop robust retail, digital, and logistics infrastructure. As online shopping continues to grow, TFG aims to leverage its omni-channel capabilities to drive sustainable growth in a capital-efficient manner, while focusing on enhancing profitability and returns.