Overview
- The rescue plan would close up to 150 stores, give more than 120 sites a three-year rent holiday, and cut rents on hundreds of other locations by between 15% and 75%.
- TG Jones’s chief executive warned the business will run out of cash unless creditors approve the proposal and the company secures court sanction.
- Modella has told major suppliers they must wait six months for payments and then accept equal monthly instalments over a year, a move suppliers say could lead to lost contracts and tighter credit.
- Several landlords including British Land have publicly opposed the package and some are considering surrendering leases even after Modella revised terms to offer landlords 50% of any earnings above £40m over three years.
- The chain was bought and rebranded by private equity owner Modella Capital last year and the outcome of the creditor votes and the June 29 hearing will determine whether the business, its 5,000 jobs and local Post Office services survive.