Key facts
- TG Jones has offered concessions to landlords to secure approval for its restructuring plan.
- The retailer will pay back rent reductions for some stores after three years and provide security for these payments.
- TG Jones has also offered landlords a 50 per cent share of future earnings if it does not reinvest in the business.
- British Land has withdrawn its objection to the proposals and will abstain from voting.
- Other landlords, such as Land Securities and New River REIT, continue to oppose the restructuring.
- TG Jones acquired 480 WH Smith stores for £40 million less than a year ago.
TG Jones has reached an agreement with its landlord British Land, a key step in its bid to avoid collapse and restructure its business. The retailer, which acquired 480 former WH Smith stores less than a year ago, had proposed significant rent cuts and store closures for its remaining locations. British Land had initially opposed these plans, calling them "fundamentally unfair" to landlords of profitable stores. However, TG Jones has now offered concessions, including paying back rent reductions for some stores and providing landlords with a 50% share of future earnings if the company does not reinvest profits. This sweetened deal has led British Land to withdraw its objection and abstain from the upcoming court vote on the restructuring. Despite this breakthrough, other landlords, including Land Securities and New River REIT, are reportedly still in opposition, with one individual calling the rent cuts on profitable stores a "dangerous precedent" for pension fund investors. TG Jones CEO Alex Willson had warned that the entire business would fail if a deal was not reached.