TG Jones wins court approval for restructuring, around 150 stores face closure

Corporate Action

โดย Yahoo Finance UK·Read original

Summary · why it matters

TG Jones, the high street chain formerly known as WH Smith, has secured High Court approval for a restructuring plan that is expected to lead to the closure of around 150 of its approximately 450 stores. The plan, sanctioned by Mr Justice Hildyard on Wednesday, includes an additional £15 million loan from owner Modella Capital on top of £10 million loaned in April, and reduced rents for landlords. Lawyers for the retailer said the company was facing an £8 million shortfall this week without the court's sanction, describing it as highly distressed. Chief executive Alex Willson said the decision protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business. The company has not disclosed how many of its 4,700 staff will be affected by the closures.

WH Smith PLC ▼

Impact on stocks 1

Consumer Discretionary▼ · 1 stocks

▼ NegativeDemandrelevance

WH Smith is the former name of TG Jones; the restructuring and store closures indicate declining demand for its physical retail services.

Off-coverage companies 2

TGJonesPrivate▼ Negative

Demandrelevance

TG Jones is closing 150 stores due to financial distress, reflecting weak customer demand and operational challenges.

Modella CapitalPrivate▼ Negative

Capitalrelevance

Modella Capital is providing additional loans to a distressed retailer, indicating financial strain and potential loss on investment.