TG Jones asks suppliers to wait six months for payment in restructuring plan

Corporate Action
โดย The Telegraph·Read original
Summary · why it matters

TG Jones, the former WH Smith high street stores now owned by Modella, has told major suppliers including Condé Nast, Ferrero, and Lonely Planet that they must wait six months to recoup any money owed, after which repayments will be made in equal monthly instalments over a year. The move is part of a complex financial restructuring plan led by consultants at Teneo, which also proposes shutting up to 150 stores, paying no rent for three years on more than 120 stores, and cutting rents on hundreds of others by between 15% and 75%. Retail sources warn the payment delay risks leaving shelves half-stocked as frustrated suppliers may sever contracts or demand upfront payment, while Modella has sweetened terms for landlords by offering a 50% share of upside if combined annual turnover reaches £40 million over three years, down from a previous £47.5 million threshold. A High Court judge will consider the plan on June 29, with creditors set to vote beforehand, though an alliance of large institutional landlords including Landsec, M&G, and NewRiver REIT has filed a notice of objection.

Impact on stocks 4

Real Estate▼ · 2 stocks
Land Securities Group PLC
LAND
▼ NegativeRegulationrelevance

Landsec is a major institutional landlord that has filed an objection to the restructuring plan, which could lead to unfavorable rent cuts or legal costs.

Consumer Discretionary▲ · 1 stocks
Others▲ · 1 stocks

Off-coverage companies 4

Modella CapitalPrivate▼ Negative
Capitalrelevance

Modella's restructuring plan involves delaying supplier payments, closing stores, and seeking rent cuts, indicating financial distress.

FerreroPrivate± Mixed
relevance

Lonely PlanetPrivate± Mixed
relevance

Teneo Holdings LLCPrivate± Mixed
relevance

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