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Up to 150 former WH Smith stores to close as high court approves restructure

Up to 150 former WH Smith stores to close as high court approves restructure

Summary

Up to 150 former WH Smith stores will close after a court approved a plan to restructure the business. The company, now called TG Jones and owned by Modella Capital, will reduce debts and cut rents to survive financially.

Key Facts

  • TG Jones owns 450 stores and has about 5,000 employees.
  • The company was bought by Modella Capital last year and rebranded from WH Smith.
  • The restructure plan includes writing off debts to suppliers and reducing rent for landlords.
  • More than 80% of landlords controlling top stores supported the plan; many others, especially those with unwanted stores, opposed it.
  • Small suppliers like card and toy makers will lose at least half the money owed to them.
  • The plan needed approval from a court judge and at least one class of creditors with 75% support.
  • Only 72% of business rates creditors and less than one-third of general creditors approved the plan.
  • The restructure aims to make TG Jones a stronger and more sustainable company.
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