Court Approves TG Jones Plan to Close Up to 150 Stores as £8 Million Cash Crunch Loomed
Updated
Updated · bbc.co.uk · Jul 1
Court Approves TG Jones Plan to Close Up to 150 Stores as £8 Million Cash Crunch Loomed
3 articles · Updated · bbc.co.uk · Jul 1
Summary
Up to 150 TG Jones stores can now close after the High Court approved Modella Capital’s restructuring, clearing the way for a turnaround of the 451-store chain.
Nearly £8 million in cash was due to run out by the end of this week, the court heard, with the retailer on the brink of insolvency despite a £10 million Modella loan and deferred liabilities.
120 landlords will get no rent for as long as three years, while rents on hundreds of other stores will be cut by 15% to 75%; the plan projects a final estate of about 302 shops.
British Land had led opposition, calling the proposal unfair, but dropped its challenge after Modella offered concessions; suppliers are also set to absorb losses.
Modella blamed underinvestment, weak trading conditions and the loss of the WH Smith brand name, saying the savings are needed to keep the business alive and fund store investment.