UK — The UK High Court approved a restructuring plan for retailer TG Jones, a move that includes the closure of up to 150 stores, the writing off of debts to suppliers, and rent reductions for many landlords.

Alex Willson, chief executive of TG Jones, said: "We welcome the court's approval of our restructuring plan. This decision allows us to move ahead with our turnaround strategy. The plan protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business."

The restructuring affects stores that were formerly WH Smith locations. Modella Capital acquired WH Smith last year, and the stores were subsequently rebranded as TG Jones. The retailer currently operates 450 stores and employs approximately 5,000 staff.

TG Jones's lawyers told the court that the company's financial position was "horrendous." The court heard that the retailer faced a cash shortfall of almost £8 million by the end of the week. Mr Justice Hildyard, the high court judge who approved the restructure, criticized the short amount of time given for the court to consider the matter.

Under the plan, small suppliers are to lose at least half the money owed to them by TG Jones. Mr Justice Hildyard said it was "difficult to swallow" the valuation Modella put on TG Jones after the restructure. Modella had valued TG Jones at no more than £3 million after the restructuring, a year after acquiring it for about £40 million.

More than 80% of landlords controlling TG Jones's top stores voted to support the deal. The restructuring plan required approval from 75% or more of one class of creditor and from a high court judge. Most other classes of landlords voted against the plan. Specifically, 72% of business rates creditors backed the plan, while less than a third of general creditors supported it. No landlords owning unwanted stores where rent will be cut to zero or stores will be closed backed the plan.