What's happened
Modella Capital is restructuring its TG Jones chain, with eight stores closing and rent holidays and deep rent cuts proposed to landlords. The plan, which aims to stabilise the business after rebranding from WH Smith, could see further closures if creditors do not approve. The group may face court proceedings to sanction the restructuring.
What's behind the headline?
What this means for shoppers and workers
- The plan hinges on landlord cooperation and creditor votes, with eight stores slated to close immediately and rent relief extended to hundreds more.
- Royalty payments to Modella are in play, with a temporary arrangement designed to avoid cash extraction while debt is managed.
- If landlords push back, more stores could shutter, intensifying costs and job losses.
What to watch next
- Creditors will vote on the plan; a sanction hearing will determine legal approval. The outcome will shape the future of TG Jones and its ability to trade through 2026.
How we got here
Modella Capital bought WH Smith’s high street stores for £76m last year and has renamed them TG Jones. The move follows a stalled turnround as weak consumer demand and higher costs bite. The restructuring seeks to protect the core store estate while seeking landlord concessions and potential future administrator involvement if needed.
Our analysis
The Guardian (multiple articles by Sarah Butler) and independent coverage of Modella Capital’s restructuring plans reveal the scope of store closures, rent relief, and royalty arrangements. Direct quotes: 'weak consumer spending' and 'these stores could close' from Guardian reports; 'the forced name change has also negatively impacted consumer awareness' as part of the restructure.
Go deeper
- What happens if landlords refuse rent holidays?
- Which stores are most at risk after the plan is approved?
- Will TG Jones revert to WH Smith branding if the plan succeeds?