Key facts
- Up to 150 former WH Smith stores will close.
- The retailer, now TG Jones, was bought by Modella Capital last year.
- The High Court approved a restructuring plan involving debt write-offs and rent cuts.
- Suppliers will lose at least half the money owed to them.
- Landlords of stores slated for closure or zero rent did not back the plan.
Up to 150 former WH Smith high street stores are set to close after the High Court approved a significant restructuring plan for the retailer, now known as TG Jones. The company, acquired last year by private equity firm Modella Capital, had warned that administration was a possibility if the plan was not sanctioned.
The approved plan aims to make TG Jones a stronger and more sustainable business by writing off debts to suppliers and implementing substantial rent reductions for many landlords. Alex Willson, CEO of TG Jones, expressed his welcome for the court's decision, stating it allows the company to proceed with its turnaround strategy and protects the core of its store estate.
While over 80% of landlords controlling TG Jones's top stores voted in favor of the deal, other creditor groups showed less support. Only 72% of business rates creditors and less than a third of general creditors, including suppliers like card and pen brands, backed the plan. Notably, landlords of stores slated for closure or rent reduction to zero did not support the restructuring. Small suppliers are expected to lose at least half the money owed to them by the former WH Smith chain.