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TG Jones Launches Rescue Plan That Could Close Up to 150 Stores

The rescue hinges on deep rent cuts from landlords, with a court 'cram-down' in reserve.

Overview

  • TG Jones, owned by Modella Capital, launched a formal Restructuring Plan on Wednesday to stem losses and keep the rebranded WHSmith chain trading.
  • Internal memos and multiple reports indicate between about 100 and 150 potential store closures, with eight sites shutting immediately.
  • The proposal seeks three-year rent holidays for roughly 100 shops and steep reductions on hundreds more, using a court mechanism to impose terms if creditors refuse.
  • A High Court hearing expected at the end of June could approve the plan if judges accept that landlords would be worse off in an administration.
  • The shake-up puts hundreds of roles across a 5,000-strong workforce at risk and could cut in-store Post Office services, with Ipswich set to close on June 6.