Up to 150 ex-WHSmith High Street stores to close as rescue deal approved
Summary
The company that took over WH Smith’s High Street stores, now called TG Jones, has won court approval to close up to 150 shops and reduce rent on many others. This plan aims to help the business survive after facing financial problems and a risk of running out of cash.Key Facts
- Modella Capital bought the former WH Smith High Street stores last year and renamed them TG Jones.
- There are currently 451 TG Jones stores employing about 4,700 people.
- Up to 150 stores will close, and rent will be cut by 15% to 75% on many remaining stores.
- Around 120 landlords will receive no rent for up to three years as part of the plan.
- The business faced a nearly £8 million cash shortfall and was close to insolvency before the court deal.
- A £10 million loan and deferred payments helped TG Jones avoid running out of money in April.
- The company blamed poor trading on tough retail conditions, loss of the WH Smith brand, and underinvestment.
- The court judge approved the restructuring plan after confirming it was fair to creditors.
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