London, May 8, 2026, 16:04 BST
TG Jones, which was previously known as the WHSmith high street chain, has warned lenders it faces possible administration by July 31 if it can’t get its restructuring plan through both creditors and the High Court. That plan, which could lead to as many as 150 store closures, is set for a creditor vote before heading to a High Court hearing on June 29.
The deadline now puts pressure on turning what started as a store-cutting plan into a last-ditch rescue for one of Britain’s most recognizable ex-high street chains. Administration, a UK insolvency procedure, hands the business and its assets over to an appointed administrator.
This week, TG Jones announced a restructuring effort supported by Modella Capital, its owner, who’s putting in over £35 million. The plan features a round of cost reductions and could see certain stores shuttered. “The survival of this iconic 234-year-old business is our imperative,” a TG Jones spokesperson said. Reuters
The move hits right away: eight locations from the 450-store network will shutter immediately. Modella wants full rent breaks for roughly 100 additional shops. Staff heard that a total of 100 to 150 sites could be going for good as the process unfolds.
According to local reports, the strain isn’t limited to big cities. In Penrith, the old WHSmith in Angel Square has been named as one of the shops hit by the rebrand. Landlords there have been approached for rent breaks and reductions as steep as 75%. If deals aren’t reached, closures could follow.
The financial pinch tightened after the brand switch. According to documents reviewed by the Guardian, Modella was still waiting on £2.9 million in royalties for the TG Jones name. The retailer, meanwhile, booked an £18.6 million loss from September through March and owed suppliers another £4 million. TG Jones pointed to fallout from losing the WHSmith name—customer loyalty took a hit—plus higher wage costs and sluggish trading.
Earlier, Retail Gazette said Modella was teaming up with Teneo and Slaughter and May on its proposal, looking at a “cram-down”—that’s the court-sanctioned mechanism that forces holdout creditors in line if certain legal hurdles are cleared. Secure Trust, reportedly behind the £50 million acquisition loan, was tipped to be a key player in the negotiations. Retail Gazette
In March 2025, WHSmith struck a deal to offload its UK high street arm to Modella Capital for £76 million in enterprise value, deliberately keeping the WHSmith brand out of the transaction. According to the company, the travel segment stays under the WHSmith banner in 32 countries. Travel delivered 75% of revenue and 85% of trading profit for the group last year.
That’s the divide shaping competition right now: WHSmith held onto the airport, rail, and hospital locations—better margins there—while Modella ended up with the town-centre sites. Those come with trickier foot traffic, plus tougher rent and labor cost pressures.
The plan faces a real chance of falling through. According to the Financial Times, landlords have voiced worries that the court-approved proposal would cut their claims, despite backing from partners like the Post Office and Toys R Us—both run concessions inside TG Jones stores.
Creditors face a stark decision: accept a court-led restructuring that would close more stores, or gamble on the company possibly going into administration by the end of July. The situation is murkier for staff. TG Jones has warned of potential job losses, though exactly how many roles are cut hinges on which locations close and what concessions landlords are willing to make.
