TG Jones financial rescue plan will go before the High Court next week, with up to 150 store closures at stake. Major landlords, the Post Office and some suppliers have backed the deal, but the company says it is likely to call in administrators if judges do not approve it.
450 stores remain in TG Jones' estate, so the proposed cut would touch roughly a third of the chain. Small suppliers would lose at least half the money owed to them if the plan is approved, while exit contract suppliers would keep a claim on future profits above a set level in three years' time.
Landlords Back 80%
More than 80% of landlords controlling TG Jones' top stores voted to support the deal this week. That support sits beside a sharper break elsewhere: no landlords owning unwanted stores where rent will be cut to zero or closed backed the plan. The plan would therefore split landlords into winners and losers before any judge signs off on it.
72% of business rates creditors backed the plan, and less than a third of general creditors voted in favour. That pattern matters because the restructuring is not being pushed through on one broad yes vote; it depends on separate creditor classes, each with its own loss profile and each with different exposure to the closure list.
Two High Court hearings
Two hearings are due next week for the two companies that make up TG Jones. Last year Modella Capital bought the former WH Smith high street business and rebranded it TG Jones, leaving this week’s vote as the latest step in a rescue process for a loss-making chain rather than a fresh expansion plan.
Brent crude fell to as low as $71.52 a barrel today, its lowest level since 27 February, while the FTSE 100 ended the day down 0.21% at 10,508 points. TG Jones faces its own judge-led test next week, and the immediate issue is whether creditor backing is enough to keep the chain out of administration.
