Full Breakdown
TG Jones Wins High Court Approval for Major Restructuring
7/1/2026, 9:35:47 PM
Court-Approved Restructuring Plan
The High Court this morning endorsed Modella Capital’s rescue plan for TG Jones, the former WH Smith high-street chain. The scheme permits the closure of up to 150 stores, rent-free periods of up to three years for 120 landlords, and rent reductions of 15-75 % on many remaining sites.
Background to the Rescue
Modella Capital bought the chain stores last year and rebranded it TG Jones. The chain employs about 4,700 staff. WH Smith’s travel-store division was excluded from the sale and retained the historic brand name. Within months, Modella cited “challenging retail conditions” and historic under-investment as reasons for a radical restructuring. The WH Smith brand continues to be used by the original company for its travel-store outlets.
Core Figures and Financial Snapshot
TG Jones faces a projected cash shortfall of nearly £8 million by the end of the week. A £10 million loan from Modella and a deferral of a large HMRC tax bill have kept the business afloat. The plan would shrink the estate to roughly 302 stores, depending on landlord decisions.
Official Statements & Responses
Modella said the plan is essential to preserve TG Jones and will free capital for store investment. Chief executive Alex Willson welcomed the judgment, stating it enables the company to move ahead with its turnaround strategy and protect the core estate. The judge noted the plan’s complexity but concluded it represented the lesser of two evils for creditors. British Land, after negotiating concessions, withdrew its objection.
Criticism & Opposition
British Land initially described the rent-waiver scheme as “fundamentally unfair,” arguing it would disadvantage landlords. Suppliers also reported significant financial strain from the restructuring, though exact figures were not disclosed.
Verbatim Quotes
- “highly distressed” — Tom Smith KC, counsel for TG Jones
- “running on fumes at the moment” — Tom Smith KC, counsel for TG Jones
- “fundamentally unfair” — British Land spokesperson
- “complex in their terms and far-reaching in their effect” — Mr Justice Hildyard
- “This decision allows us to move ahead with our turnaround strategy.” — Alex Willson, chief executive, TG Jones
Why It Matters
The approval prevents the retailer from entering insolvency, allowing the restructuring to proceed and preserving the core of its high-street estate. It also sets a precedent for large-scale rent renegotiations in the UK retail sector, influencing landlord-tenant dynamics and supplier relations.
What’s Next
TG Jones will begin closing selected stores and applying rent concessions in the coming weeks. The court will monitor compliance, and the company plans to use savings to refurbish the remaining estate.
