The High Court has delayed its decision on the restructuring plan of TG Jones, the former WHSmith chain, placing its entire UK estate of approximately 480 stores and 5,000 jobs in jeopardy. The ruling, originally expected on Monday, June 29, was postponed by Mr Justice Hildeyard, who described the case as "too complex" and requested additional time to review transcripts of previous meetings.
Financial Pressures Mount
Without court approval, TG Jones faced a £14.1 million bill due on Tuesday, June 30, including £8.4 million owed to the taxman, £3.4 million in business rates, and £3.1 million to suppliers due by Friday. The company's counsel, Tom Smith KC of South Square, warned that the firm had insufficient funds to cover all obligations, stating, "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."
Smith also revealed that TG Jones faces an £8 million shortfall by the end of the week unless the rescue deal is approved, which would unlock a £15 million loan from its owner, Modella Capital. The judge acknowledged the financial pressure but signaled he would not rule before Wednesday morning.
Restructuring Plan Details
The proposed restructuring plan, submitted to the High Court on June 29, includes closing up to 150 stores and significantly reducing rent costs at hundreds of others to improve the company's performance. However, the plan has faced opposition from landlords, suppliers, and other creditors who argued they were being asked to bear too much of the burden.
TG Jones was created in June 2025 when investment firm Modella Capital acquired WHSmith for £76 million, ending the 233-year legacy of one of the UK's most iconic high street names. The rebranding was met with mixed reactions from consumers.
Stores Already Closing
The company has already confirmed the closure of its Ayr and Stirling branches on July 11, which will also result in the closure of adjoining Post Offices. Challenging trading conditions, including shifts in consumer spending habits and rising costs, have compounded the retailer's difficulties.
Despite the setbacks, bosses at TG Jones remain "still confident" that the judge will ultimately approve the restructuring plan. The company has been approached for comment but has not yet responded.
