Judge questions viability of TG Jones turnaround after WH Smith rescue plan

The judge who sanctioned the restructuring of the former WH Smith high-street chain, now operating as TG Jones, voiced strong reservations about the plan's prospects, calling the risks "very considerable" and the outlook more aspirational than concrete. The court-approved scheme will see 150 of TG Jones' 450 stores closed and involves significant debt write-offs for suppliers and rent reductions for landlords. Valuation of the business dropped to £3 million, far below the roughly £40 million purchase price paid by Modella Capital last year.

Modella, which also owns Hobbycraft and previously controlled the UK arms of Claire’s and The Original Factory Shop, has injected new capital to support the turnaround. TG Jones chief executive Alex Willson welcomed the decision, saying it safeguards the core estate and makes the business more sustainable. The restructuring required a cram-down because many creditor classes opposed the plan, with less than a third of general creditors consenting and landlords receiving no support. Credit-analysis firm Debtwire highlighted the judgment's significance for UK courts balancing restructuring safeguards against potential abuse.