Up to 150 TG Jones high street stores are facing potential closure following a court-approved restructuring. Another 120 former WH Smith store landlords are being requested to forego rent for three years, while rent reductions of 15% to 75% are proposed for hundreds of other stores to reduce costs and prevent insolvency.
Legal representatives of TG Jones emphasized to a judge in the High Court the urgent need for the restructuring plan, citing an £8 million weekly deficit if not approved. The company, under financial strain, secured an additional £15 million loan from Modella Capital on top of a previous £10 million loan in April, along with reduced rent rates for landlords.
The rebranded TG Jones stores, formerly known as WH Smith, have been impacted by long-term sales decline, high inflation, increased online shopping, reduced consumer spending, and higher operational costs. The transition from WH Smith to TG Jones has also negatively affected sales.
With around 450 TG Jones stores and 4,700 employees mainly in the UK, it is anticipated that approximately 150 stores may close as part of the restructuring plan. The company’s CEO, Alex Willson, expressed gratitude for the court’s approval of the plan, aiming to strengthen the business and ensure sustainability. The judge, Mr. Justice Hildyard, acknowledged the complexity and significance of the approved plans, emphasizing the necessity of the restructuring for the retail operations’ future.