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Up to 150 TG Jones Stores to Close After Court Approves Rescue Plan Court Approves Major Restructuring Plan TG Jones, the former WH Smith High Street business, has received court approval for a major restructuring plan that could lead to the closure of up to 150 stores across the UK. The decision is part of a wider effort to reduce costs and improve the company's long term financial position. The retailer currently operates 451 stores and employs around 4,700 people. However, the approved restructuring is expected to reduce the network to around 302 locations, depending on agreements with landlords. Why the Company Is Closing Stores Investment firm Modella Capital purchased the High Street business last year and later rebranded it as TG Jones. The travel division, which operates in airports and railway stations, remained under WH Smith and was not included in the sale. According to the company, the business has struggled because of difficult retail conditions, years of limited investment in stores, and the loss of the well known WH Smith brand name. These factors have contributed to declining sales and increased financial pressure. Company representatives told the court that TG Jones was facing an urgent cash shortage and needed immediate action to avoid insolvency. Without the restructuring plan, the retailer risked running out of money within days. Rent Cuts and Store Closures As part of the rescue package, around 120 landlords will not receive rent for up to three years. In addition, hundreds of other stores will receive rent reductions ranging from 15% to 75%. Modella Capital believes these savings will help stabilize the business and allow future investment in stores that remain open. The company says the plan gives TG Jones the best chance of returning to a stronger financial position. Landlords and Suppliers Raise Concerns Several landlords and suppliers opposed the restructuring plan, arguing that it placed an unfair financial burden on them. British Land was among the most vocal opponents during the legal process. Following further negotiations and several changes to the proposal, British Land withdrew its objections. Even so, many suppliers are still expected to face financial losses under the approved plan. Judge Gives Final Approval The High Court reviewed whether the restructuring would leave creditors in a better position than placing the company into administration. After considering the evidence, the judge approved the proposal. In his decision, Mr Justice Hildyard described the restructuring as both complex and far reaching. He concluded that the plan offered the most practical solution for preserving the business while avoiding a more damaging insolvency process.
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Up to 150 TG Jones Stores to Close After Court Approves Rescue Plan

Court Approves Major Restructuring Plan TG Jones, the former WH Smith High…

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