Hundreds of TG Jones branches are at risk of closure with 5,000 jobs on the line after a judge delayed a decision on a restructuring plan. The chain, formerly WH Smith on the High Street, has applied for permission to restructure its debt in a deal that would see 150 branches close.
Judge needs more time to decide complex case
Mr Justice Hildyard said he needs more time to decide the complex case, but TG Jones owners have said they will struggle to repay millions of pounds due this week. TG Jones’s owners say they are confident the judge will approve the company’s rescue deal.
Lawyers for TG Jones told the High Court the company has to pay tax, payroll and rent today, Tuesday. “We haven’t got enough to pay off three, so we’d have to make a choice as to which two to pay out of the three,” said Tom Smith KC.
Financial pressures mount
Mr Justice Hildyard said he was aware of the financial pressure but would not make a decision before Wednesday. TG Jones is facing a £14.1million bill on Tuesday with £3.1m more to be paid to suppliers on Friday.
The rescue deal would unlock a £15million loan from TG Jones owner Modella Capital. TG Jones owes £4m to suppliers, £3.4m in rates and £8.4m to HMRC. Some councils have said they will seize assets if business rates are not paid.
Critical week ahead
A source told the Telegraph TG Jones would avoid administration but said it was critical to gain approval for its plan this week. Modella Capital bought WH Smith’s high-street shops for £76m last year.
