London, May 8, 2026, 16:04 BST
TG Jones, the rebranded former WHSmith high street chain, has told lenders it could fall into administration by July 31 unless creditors and the High Court approve a restructuring plan that may close up to 150 shops. The plan is due to go before the High Court on June 29, after a creditor vote.
The deadline turns a store-cutting exercise into a rescue test for one of Britain’s best-known former high street estates. Administration is a UK insolvency process in which control of a company and its assets passes to a professional administrator.
TG Jones said this week it had launched a restructuring plan backed by financial support from owner Modella Capital, including cost cuts and possible store closures. “The survival of this iconic 234-year-old business is our imperative,” a TG Jones spokesperson said, while Modella has committed more than £35 million to the effort. Reuters
The plan has immediate consequences. Eight stores in the remaining 450-shop estate are set to close, Modella is seeking full rent holidays on about 100 more, and staff were told that between 100 and 150 outlets were likely to shut under the process.
Local reports show the pressure spreading beyond large city centres. Penrith Town said the former WHSmith store in Angel Square was among the shops affected by the rebrand, and reported that landlords were being asked for rent holidays and reductions of up to 75%, with closures possible where cuts are not agreed.
The brand switch has become part of the financial strain. Documents seen by the Guardian showed Modella was owed £2.9 million in royalty fees for the TG Jones name, while the retailer had recorded an £18.6 million loss between September and March and owed suppliers £4 million. TG Jones also cited the loss of customer loyalty tied to the WHSmith name, higher employment costs and weak trading.
Retail Gazette earlier reported that Modella was working with Teneo and Slaughter and May on the proposal and had been considering a “cram-down”, a court-backed route that can bind dissenting creditors if legal tests are met. Secure Trust, which was understood to have provided a £50 million loan for the acquisition, was expected to have a central role in talks. Retail Gazette
WHSmith agreed in March 2025 to sell its UK high street business to Modella Capital for an enterprise value of £76 million, with the WHSmith brand excluded from the sale. WHSmith said at the time that its travel division would continue to trade under the WHSmith name across 32 countries, and that travel had generated 75% of group revenue and 85% of trading profit in the previous financial year.
That split is the competitive backdrop. WHSmith kept the higher-margin airport, rail and hospital stores, while Modella took on the more exposed town-centre estate, where footfall, rents and labour costs are harder to manage.
There is a clear risk that the plan does not land. The Financial Times reported that landlords had raised concerns about the court-backed plan reducing claims, even as the proposal had support from partners including the Post Office and Toys R Us, which operate concessions in TG Jones stores.
For creditors, the choice is blunt: take a court-supervised restructuring with fewer stores, or risk an administration by the end of July. For staff, the answer is less tidy. TG Jones has said job losses may follow, but the final number will depend on which stores shut and what landlords agree to give up.
