LONDON, June 20, 2026, 19:08 BST
- The chief executive said TG Jones does not have enough cash to keep going unless the court signs off.
- As many as 150 out of 450 stores may shut, which puts around 5,000 jobs on the line.
- Problems with late supplier payments and moves by landlords are already putting pressure on stock levels and the store estate.
TG Jones could run out of money if a court doesn’t back its restructuring plan at a hearing at the end of June, CEO Alex Willson said. That leaves the ex-WH Smith chain at risk of collapse. “We just don’t have the cash to continue,” Willson said. The company has promised landlords half of any profit above £40 million over three years as a last-ditch bid to get them on board. The Times
TG Jones is up against an immediate deadline. Creditors have seen documents warning the retailer will run out of funding “on or around the end of June 2026” unless a court approves its restructuring, putting the legal process as the key hurdle to avoiding administration. The Bookseller
TG Jones is holding back payments to suppliers as it looks to save cash. Some retail sources said vendors might pull credit, ask for upfront payment or stop supplying altogether, which could mean even fewer goods on shelves and half-empty drinks fridges. The company said most suppliers still backed it and business was on usual terms.
Locks at the Belle Vue Terrace store in Great Malvern were changed back on June 15. A sign said goods can be picked up by arrangement up to June 29.
Court backs rescue plan facing heat from landlords
The rescue involves a court-backed restructuring plan known as a cross-class “cram down”, letting the deal go through even with some creditor groups objecting if it clears legal hurdles. Landlords including British Land, Landsec, M&G and NewRiver are objecting to terms that would keep them from collecting rent at more than 120 stores for three years, plus slash rents by 15% to 75% at hundreds of other sites. The High Court is set to review the approval on June 29. CoStar
Cash isn’t just tight for rent. Restructuring papers showed a £18.6 million loss for the six months to March, with sales down 12%. The business owes around £4 million to suppliers, has £3.4 million in overdue business rates, and has delayed a £8.4 million tax payment through a deal with HM Revenue & Customs.
Willson’s plan sticks to basics. He’s cutting prices, giving stores a refresh, narrowing the selection, hiring people with more experience and boosting links with Post Office, Toys R Us and Hobbycraft. “High Street prices are coming down. Simple as that,” he said this week. Retailsector
The tougher job for the rescue comes next. While a judge can reset debts and leases, suppliers do not have to extend credit and customers may not trust a new, unfamiliar name. Vernon Dennis, business advisory head at Howard Kennedy, said this is “a high-stakes test for Modella,” which owns the chain. The Guardian
Court approval wouldn’t wipe the slate. Retail consultant Jonathan De Mello said the chain needs “root and branch reform of the entire business”. Tougher supplier terms, more landlord take-backs, or weak sales recovery could all drive up cash needs and force extra closures on top of what’s planned now. The Times
Modella paid £10 million upfront to buy the high street business, with another £32 million depending on how the business performs. WH Smith kept its airport and railway arms, which are not part of the TG Jones restructuring.
TG Jones is in a fight over who takes the hit. The company wants more time from creditors. But the Malvern lockout is a sign some lenders may choose to take the assets instead of waiting for a turnaround.
