Up to 150 former WH Smith stores to close as high court approves restructure

The restructuring plan involves writing off debts to suppliers and cutting rent for many landlords.

Published 1 July 2026 443 words
BUSINESS B2
Up to 150 former WH Smith stores to close as high court approves restructure

Up to 150 shops that used to be part of WH Smith will close. This is happening because the high court has approved a major plan to change the company's structure. This change could affect thousands of jobs.

The company, which is now called TG Jones, has 450 stores and about 5,000 employees. It was bought last year by Modella Capital, a company that also owns Hobbycraft. Modella Capital renamed the business TG Jones.

TG Jones had warned that it might have to close down completely if the restructuring plan was not approved. This plan includes not paying back all the money owed to suppliers and reducing the rent paid to landlords.

The chief executive of TG Jones, Alex Willson, said they are happy with the court's decision. He explained that this approval allows them to start their plan to improve the business. He also thanked the employees, partners, and others who helped during this difficult time, and Modella Capital for its financial support.

The judge, Mr Justice Hildyard, agreed to the plan. However, he mentioned that the court had very little time to consider all the details. Lawyers for TG Jones had told the court that the company's financial situation was very bad and that it faced a shortage of almost £8 million by the end of that week.

The judge also found it hard to accept the new, low value Modella Capital placed on TG Jones after the restructure. This value was no more than £3 million, which is much less than the £40 million it was bought for just a year ago.

Experts say that this type of court-approved restructuring, sometimes called a 'cram down', can make it easier for companies to make big changes quickly, especially when dealing with rent agreements. More than 80% of landlords for TG Jones's most important stores voted in favour of the plan, even though many will have to accept lower rent. However, other groups of creditors, like business rates payers and general suppliers, did not vote in favour.

Vocabulary

restructure — to change the way a company is organised or managed, often to make it more efficient or profitable
affect — to have an influence on someone or something
debt — money that is owed to someone else
suppliers — companies or people who provide goods or services to another company
landlords — people or companies that own buildings and rent them out to others
turnaround strategy — a plan to improve a company's performance after it has been doing badly
shortfall — an amount of something that is less than the amount that was needed or expected
creditors — people or organisations to whom a sum of money is owed

Discussion Questions

  1. Why are up to 150 TG Jones stores closing?
  2. What are the main parts of the restructuring plan for TG Jones?
  3. What challenges did the company face, and how did the court's decision help?

Based on an article from The Guardian.

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