TG Jones, the Rebranded Former WH Smith High Street Chain, Has Cast Doubt on the Retailer's Future, Citing "Very Considerable" Risks

Mr Justice Hildyard, in a judgment published Wednesday, called the restructuring "an adventurous equity play" and said execution risk was high, noting the company's £3m valuation versus its £40m acquisition price a year earlier. The plan, approved last month, involves closing 150 of 450 stores and writing off debts to suppliers, with less than a third of general creditors and no landlords backing it. Owner Modella Capital, which also backs Hobbycraft, bought the chain last year and rebranded it after sales fell.

The judge approved the plan because Modella provided new investment, despite his scepticism. CEO Alex Willson said the plan "protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business. The court used a "cram down" scheme to impose the restructuring on dissenting creditors. Hossein Dabiri of Debtwire said the judgment highlights the fine line UK courts must walk with such plans, avoiding them becoming an "engine of abuse while weighing the danger of collapse for a national high street business.