TG Jones, the company operating former WHSmith High Street locations, has received judicial approval for a significant restructuring effort. This plan involves the closure of up to 150 branches and substantial rent reductions for many remaining outlets. Purchased by Modella Capital last year, the chain currently manages 451 sites and employs approximately 4,700 individuals. It is important to note that WHSmith travel hubs at airports and railway stations remain unaffected by this deal.
The company, facing a severe cash shortage of nearly £8 million, argued the plan is essential to avoid insolvency. During High Court proceedings, representatives described the firm as being in a state of high distress. To secure the business’s future, Modella Capital has committed to using cost savings for store improvements. Under the approved terms, some landlords will face three years without rent, while others will see cuts ranging from 15% to 75%.
Although British Land initially opposed the proposal, labeling it unfair, the company withdrew its objection following concessions. The final store count is expected to stabilize at 302, provided landlords do not terminate their leases in response to the rent adjustments. Mr. Justice Hildyard authorized the move, determining the plan is preferable to total administration. TG Jones chief executive Alex Willson praised the decision as a vital step in ensuring the long-term sustainability of the brand.
