TG Jones, the high street retailer formerly known as WHSmith, could close 150 stores and pay no rent on a further 120 shops under a three-year restructuring plan designed to stave off insolvency. If a judge does not approve the proposal next month, the company faces collapse.
Plan details and creditor backlash
The plan, which requires court approval, would allow TG Jones to shutter 150 storefronts across the UK while suspending rent payments on 120 additional locations. Critics argue the measures do not guarantee the company’s survival beyond the three-year term. An unnamed creditor told Sky News: "It presupposes that the company will have sufficient cash in three years to pay an upside at all while the business will still have to pay its debts."
The same creditor criticised the decision to pay 12% over base rate for the Modella-owned TG Jones name, calling it "bizarre." They added: "It is bizarre that they agreed to pay millions of pounds for a completely unknown brand in the first place."
Landlord concerns
An executive at one of TG Jones' landlords described the situation as unjust, claiming Modella was "discounting profitable stores that on their own analysis are not overrented." The executive said: "Any landlord who keeps providing those stores is effectively giving a loan to the business of the amount by which the rent has been reduced – but not getting paid for it at anything like the same rates as Modella is getting."
Company response
A TG Jones spokesperson defended the plan, stating: "We are aware of suggestions made by a small number of landlords in connection with the Restructuring Plan. We have engaged constructively with these landlords, as we have with other creditors across the estate. As a result of that engagement, we have improved the terms of the Plan to reflect feedback received. We believe these improvements demonstrate our commitment to achieving a satisfactory outcome for all stakeholders."
The retailer rebranded from WHSmith last year, a move that faced heavy public backlash. A full list of stores earmarked for closure has not been released.
