TGJones under threat of insolvency following court ruling delay
WHSmith’s former high street business, now trading as TGJones, is under threat of insolvency after a High Court ruling delayed a decision on the retailer’s proposed restructuring plans.
The retailer – which was acquired by private equity firm Modella Capital last year – said it may struggle to meet millions of pounds’ worth of payments due this week without approval for its rescue plan, The Telegraph has reported.
Mr Justice Hildeyard said more time would be required to consider the case, putting the futures of 480 stores at risk.
Under the proposed plan, TGJones is expected to close up to 150 stores. Modella previously said the restructuring plan is required to protect the core of the store estate and build a more sustainable business. The firm also said it plans to invest £35m into the retailer, introducing rent reductions and changes to supplier repayment terms.
WHSmith offloaded its high street business last year to focus on its more profitable travel division, which still operates under the company’s original name. The remaining shops’ rebrand to TGJones meant that the WHSmith name disappeared from UK high streets after almost 200 years.