The UK High Court approved a sweeping restructuring plan for retail chain TG Jones on Wednesday, July 1, 2026.
The decision will trigger up to 150 store closures and steep rent cuts across its remaining retail estate to avoid imminent insolvency.
The retailer operates 450 stores and employs roughly 4,700 workers.
It faced an £8 million cash shortfall by the end of the week covering tax, rent, suppliers, and payroll.
Private equity firm Modella Capital purchased the high street branch from WH Smith last year for £10 million.
The historic WH Smith brand name was retained by its separate travel hub locations.
Legal representatives for TG Jones revealed that the company would have exhausted its cash reserves in April without a £10 million injection from Modella and deferred liabilities.
The newly approved court order unlocks an additional £15 million loan from Modella Capital to fund its ongoing turnaround operations.
"I am persuaded that it is the jurisdiction of the court to sanction both plans and it is my decision to do so," said Mr Justice Hildyard, High Court Judge.
The judge noted the administrative complexity of the case before granting approval under a model that allows courts to bind dissenting creditors.
"I did not find this to be an easy matter," said Mr Justice Hildyard.
In written observations, the judge acknowledged the far-reaching nature of the restructuring while assessing whether the chain had a viable operational future.
"I propose to sanction the plans," he said.
Under the finalized agreement, more than 80 percent of landlords managing the top-tier stores supported the proposal. General creditors and business rates claimants largely voted against it.
Landlords of underperforming locations face zero rent for three years or lease terminations. Independent card, toy, and publishing suppliers will lose over half of their outstanding debts.
"We welcome the court's approval of our restructuring plan," said Alex Willson, Chief Executive of TG Jones.
The executive expressed optimism that the drastic overhead reductions would stabilize the business after a period of poor trading driven by high inflation and reduced consumer spending.
"This decision allows us to move ahead with our turnaround strategy," Willson said.
Management also cited the forced loss of the recognized WH Smith brand name as a major contributor to declining revenue volumes over the past year.
"The plan protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business," Willson added.
The company has not yet detailed the precise timeline for individual store closures or the exact number of employee redundancies resulting from the downsized network.
"We are incredibly grateful to all the colleagues, partners and stakeholders who engaged constructively throughout the process, and to Modella Capital for its continued financial commitment," Willson said.
