TG Jones has announced further closures following the approval of its restructuring plan that puts 150 stores at risk. Its Dorking branch in Surrey will close its doors for the last time on October 10, marking the 23rd closure this month alone. The Leatherhead and Didcot locations are also set to shutter next year, on January 9.
Financial backing and lease changes
The now-confirmed proposals mean an extra £15 million loan from the company’s owners, Modella Capital, on top of a £10 million loan in April, and reduced rents for landlords. The chain of high street shops was renamed to TG Jones last year after being bought by Modella, while WH Smith kept its group of stores in travel locations such as airports and train stations.
There are around 450 TG Jones stores with 4,700 staff, mostly in the UK. It previously warned that the overhaul would put jobs at risk, but has not disclosed how many workers will be affected.
Court approval and company response
Tom Smith KC, for TG Jones, said that the “working assumption” is that around 150 of these will close as a result of the plans, as landlords who do not wish to accept the reduced rate can choose to terminate the lease. He also said the company has suffered from “long-term sales decline”, exacerbated by high inflation, increased online shopping, reduced consumer spending, and higher labour costs and taxes.
Mr Justice Hildyard said in a written summary that the approved plans are “complex” and “far-reaching in their effect”. He added: “I have had to stand back, and ultimately subjectively assess, whether the plans have a realistic prospect of achieving their purpose, or whether in reality they are flawed, or more generally, whether the writing was on the wall for retail operations of this kind... I propose to sanction the plans.”
Alex Willson, chief executive of TG Jones, said at the time: “We welcome the court’s approval of our restructuring plan. This decision allows us to move ahead with our turnaround strategy.”
Confirmed closures
“The plan protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business. We are incredibly grateful to all the colleagues, partners and stakeholders who engaged constructively throughout the process, and to Modella Capital for its continued financial commitment.”
The full list of confirmed closures includes Dorking, Leatherhead, and Didcot.
