Key TG Jones landlords back restructuring plan ahead of court ruling on retailer's future

TG Jones has won backing from more than 80% of the landlords controlling its top stores for a restructuring plan that could decide whether the former WH Smith high street business keeps trading.

The support marks a key shift for the retailer, which is owned by Modella Capital and has warned that it may enter administration if the plan is not approved. The deal still needs High Court sanction next week, and other creditor groups remain opposed.

Landlords swing behind the plan

The latest update in the long-running restructuring fight is the backing from the landlord bloc most exposed to the company's largest and most valuable sites. According to reporting seen by The Guardian, more than 80% of landlords controlling TG Jones' top stores voted in favour of the plan.

That support matters because the rescue package depends on getting enough creditor approval to keep the retailer operating under a smaller, reworked estate. The Guardian said the backing came after revised terms were offered.

Major landlords and the Post Office were among those supporting the proposal, while no landlords owning stores earmarked for rent cuts to zero or closure backed it.

What the restructuring would do

The plan would allow TG Jones to close up to 150 stores and cut rents at others. It is designed to shrink the chain into a more sustainable business rather than push it immediately into administration.

The retailer operates about 450 stores and employs around 5,000 people, according to the coverage. That gives the restructuring wide implications for staff, suppliers, landlords and other creditors.

Earlier reporting said Modella Capital had been prepared to invest £35 million into the business, but only if the restructuring could be put through. The Times also reported that TG Jones offered landlords 50% of future earnings above £40 million in an effort to win support.

Creditors still split

Landlord support is important, but it is not the same as final approval. Other creditor classes remain a problem for the company, and the voting numbers reported by The Guardian show why the plan is still exposed.

Only 72% of business rates creditors backed the proposal, while less than a third of general creditors supported it. That leaves the company reliant on the court process to determine whether the plan can go ahead.

The restructuring has already drawn criticism from some affected groups, especially because suppliers and other unsecured creditors could recover less under the deal than they might under a different outcome.

Court ruling next week

The next major step is the High Court hearing, which is due next week. Even if the necessary support thresholds have been met, the plan still needs judicial approval before it can be implemented.

If the court rejects the proposal, TG Jones has warned it may enter administration. That would create fresh uncertainty over the store estate, jobs and creditor recoveries.

The court decision will therefore be the immediate test of whether the revised plan can stabilise the chain or whether the company is pushed into a more formal insolvency process.

Why TG Jones matters

TG Jones is the rebranded former WH Smith high street business, bought by Modella Capital in 2025. Since then, the chain has become one of the more closely watched retail restructurings on the high street.

The business has been trying to balance rent relief, store closures and creditor concessions while preserving enough of the estate to keep trading. The current plan is the latest attempt to do that.

For landlords, the deal offers a route to keep a tenant trading, even if on revised terms. For suppliers and other creditors, it raises the prospect of losses in exchange for avoiding a collapse that could be even worse.

What happens now

The court hearing next week will determine whether TG Jones can continue under the restructuring plan or whether it moves closer to administration.

For now, the company has secured a significant landlord bloc behind its rescue package, but not enough certainty to call the outcome settled. The decisive question is whether the High Court will approve the plan and allow the retailer to move ahead with a smaller, lower-rent store base.