Lenders received warnings that TG Jones could enter administration by the end of July if creditors reject restructuring plans to close up to 150 stores.

Restructuring Plan Overview

Modella Capital, the private-equity firm that now owns the rebranded chain formerly known as WH Smith high-street stores, presented a rescue proposal to creditors on Wednesday. The plan calls for Modella to inject £35 million into the business while downsizing operations. This includes shutting up to 150 of the chain’s 480 locations and implementing staff redundancies.

Landlords must agree to extended rent holidays or significant reductions, or risk the retailer declaring bankruptcy. The proposals specify that failure to implement by July 31 will lead to administration proceedings.

Company’s Turnaround Strategy

A TG Jones spokesperson emphasized that the overhaul decision was not made lightly but remains essential for the company’s survival. The retailer attributes declining public awareness to the recent forced rebranding from WH Smith, alongside broader economic pressures linked to Chancellor Rachel Reeves’ policies.

WH Smith’s high-street sales had faltered for years before Modella acquired the division last year for £40 million and rebranded it as TG Jones.

Modella Capital’s Retail Investments

The administration threat marks TG Jones as the third high-street chain acquired by Modella in the past 18 months to encounter severe financial difficulties. Earlier efforts to expand the operation beyond 500 stores, including Toys R Us and Hobbycraft concessions, faltered. The Original Factory Shop and Claire’s Accessories both collapsed into administration shortly after Modella’s takeover, resulting in nearly 2,500 job losses.

Next Steps for Approval

The restructuring requires approval from three-quarters of creditors and landlords. If opposed, the High Court may impose the plan to avert administration. A court hearing is scheduled for June 29, after which implementation could proceed swiftly.