UK excessive road big places 150 shops in danger after controversial rebrand
TG Jones, formerly WHSmith, has outlined a plan to close 150 stores across the UK and pay no rent on a further 120 shops as part of a three-year rescue plan to save the business from insolvency — but creditors say the proposal does not go far enough
A high street giant is looking to close 150 stores in the UK (file)(Image: Getty)
A UK high street giant could shut down 150 of its outlets should a deal receive court approval. TG Jones, previously known as WHSmith, has revealed plans to close 150 branches nationwide and cease paying rent on an additional 120 stores as part of a three-year strategy to rescue the business from collapse.
The high street retailer has attracted criticism over its rescue plan. Detractors argue that shuttering the outlets as part of the survival strategy offers no guarantee the company will remain trading in three years as set out in the proposal.
If a judge refuses to approve the proposal next month, TG Jones could reportedly face administration, reports the Express.
Should the plans receive approval, TG Jones would shut down 150 of its locations. A complete list remains undisclosed, but creditors argue the proposal falls short of what’s needed.
Speaking to Sky News, the anonymous creditor said: “It presupposes that the company will have sufficient cash in three years to pay an upside at all while the business will still have to repay its debts.”,
The creditor also branded the decision to pay 12% above base rate for the Modella-owned TG Jones name “bizarre”. They added: “It is bizarre that they agreed to pay millions of pounds for a completely unknown brand in the first place.”
An executive at one of TG Jones’ landlords claimed it was unfair that Modella was “discounting profitable stores that on their own analysis are not overrented”.
The executive stated: “Any landlord who keeps providing those stores is effectively giving a loan to the business of the amount by which the rent has been reduced – but not getting paid for it at anything like the same rates as Modella is getting.”
A spokesperson for TGJones commented: “We are aware of suggestions made by a small number of landlords in connection with the Restructuring Plan. We have engaged constructively with these landlords, as we have with other creditors across the estate.
“As a result of that engagement, we have improved the terms of the Plan to reflect feedback received. We believe these improvements demonstrate our commitment to achieving a satisfactory outcome for all stakeholders.”
For the latest breaking news and stories from across the globe from the Daily Star, sign up for our newsletters.
