North East TG Jones stores at risk of closing as 150 to be axed

TG Jones sites across the UK are under threat following the company’s approval of a restructuring plan by the High Court on Wednesday.

Branches in Darlington, Durham, Northallerton, Middlesbrough, the Metrocentre and more could be at risk, though the company has not yet confirmed which locations will be affected.

The closures are part of plans to prevent the business from collapsing into insolvency.

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.

“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.”

TG Jones was formerly known as WH Smith until a rebrand last year, following its acquisition by Modella.

The WH Smith brand remains in use at airport and train stations.

The retailer warned previously that a major overhaul would be required to save the business, putting stores and jobs at risk.

During the court hearing, lawyers for TG Jones told the judge the company was “highly distressed” and could face an £8 million funding shortfall without immediate approval of its restructuring plan.

The court-approved plan secures a further £15 million loan from Modella Capital, adding to the £10 million already provided in April.

The scheme will also see reduced rent payments for landlords.

Mr Justice Hildyard said: “I am persuaded that it is the jurisdiction of the court to sanction both plans and it is my decision to do so.

“I did not find this to be an easy matter.”

The retailer operates around 450 stores and employs 4,700 staff, mostly in the UK.

The company has not confirmed how many workers will be affected by the closures.

Tom Smith KC, representing TG Jones, said an estimated 150 stores could close under the new plan, depending on landlord agreements.

He said the business had suffered from “long-term sales decline” as a result of high inflation, reduced consumer spending, the rise of online shopping and increased operating costs.

Mr Smith said TG Jones had also experienced a drop in sales since rebranding from WH Smith.