UK retailer TG Jones secures court-backed restructuring with £15m cash infusion and steep rent reductions across its 451 stores.
UK retailer TG Jones has won court approval for a restructuring plan that includes a £15m cash injection from owner Modella Capital and sharp rent cuts across its 451-store portfolio. The plan, sanctioned by Judge Robert Hildyard, allows numerous outlets to pay no rent for several years, though around 150 landlords are expected to terminate leases.
The move follows a £10m emergency injection from Modella in April, alongside deferred tax payments exceeding £8 million, to prevent the retailer from running out of funds. TG Jones was acquired by the private equity firm from WH Smith just over a year ago, adding to a series of struggling retail investments under Modella’s ownership.
Modella’s other recent acquisitions, Claire’s and The Original Factory Shop, collapsed into administration in January, with Claire’s closing all UK stores in April after nearly 30 years on high streets.