TG Jones seeks creditor approval, plan to close 150 stores

A major UK high street retailer faces potential insolvency unless creditors approve a drastic restructuring plan later this month. TG Jones, the company formed from the former high street and online operations of WH Smith, has warned it will run out of cash if a court does not sanction a proposal to close up to 150 of its approximately 450 stores and implement steep rent reductions across its remaining estate.

Chief Executive Alex Willson, who took the role in March, stated the company had reached a critical point and described the restructuring as its only realistic opportunity to remain operational. The outcome hinges on a court hearing scheduled for the end of June. Without approval, management says the company could face immediate insolvency.

The plan, part of a three-year turnaround strategy, also involves paying no rent on a further 120 stores for three years and cutting rents on hundreds of others by between 15 and 75 percent. To secure creditor support, TG Jones and its owner, private equity firm Modella Capital, have revised the terms of the proposal. Under the updated deal, landlords would receive 50 percent of any profits above 40 million generated over the next three...