Up to 150 former WH Smith stores will close after court approves plan

Around 150 shops that used to be WH Smith stores will soon close. This is happening because a plan to change the company was approved by the high court. This change could also affect the jobs of many people who work there.

The company, now called TG Jones, has 450 stores in total and employs about 5,000 people. It was bought last year by a company called Modella Capital. TG Jones had warned that it might have to close completely if the restructuring plan was not accepted.

The plan involves reducing the amount of money owed to companies that supply the stores and lowering the rent for many building owners. Alex Willson, the chief executive of TG Jones, said that the court’s approval helps the company start its plan to become stronger and more stable. He thanked the employees, partners, and others who helped make the plan possible.

The judge who approved the plan noted that it was a difficult decision. The lawyers for TG Jones explained that the company's financial situation was very bad, with a significant lack of money to pay rent, workers, and taxes soon. The judge also commented on the difference in the company's value before and after the planned changes.

This type of court-approved restructure can help companies make big changes more quickly, especially when dealing with store rents and debts. While many landlords and other creditors voted against the plan because they would lose money, the court's approval allows it to go forward. Some smaller suppliers will lose at least half of the money they are owed by the company.