Major high street retailer could collapse with £8m shortfall

The stationary and book shop has 450 sites across the UK including numerous former WH Smith branches across Oxfordshire.

These include stores in Cornmarket, Oxford, and in Witney, Abingdon, Chipping Norton, Didcot, Wantage and Banbury. The takeover came into effect a year ago.

READ MORE: TG Jones confirms stores may close

TG Jones could face insolvency without a rescue deal, according to a High Court hearing held on Monday, and about 150 stores could shut. A decision was expected today.

The company is seeking approval for a restructuring plan that would unlock a further £15m loan from its owners, Modella Capital, who already loaned £10m in April.

If stores close it will leave large empty retail units in towns and cities across the country.

The Toys R Us chain has a section in some TG Jones stores including the one in Oxford.

WH Smith in Cornmarket Street Oxford (Image: Contributed)

Tom Smith KC, representing TG Jones, said: “The business is highly distressed after suffering long-term sales decline.”

He told the court that without support, the company would face an £8m shortfall this week after paying tax, rent, suppliers, and payroll.

He added: “As is well known, the UK retail sector has faced serious trading difficulties in recent years.

“The problems facing the sector have their roots in macroeconomic factors such as high inflation, the shift to online shopping, reduced consumer spending, higher labour costs and increased taxes.”

TG Jones, which employs 4,700 staff across 450 stores, rebranded last year after being acquired by Modella.

WH Smith retained its travel-focused outlets in airports and train stations, including the shop at Oxford railway station.

If the restructuring plan is approved, around 150 shops are expected to close.

Mr Smith added: “That will assist in ensuring the future of the group.”

It has been a difficult year for the UK high street, with several retailers entering administration and others announcing widespread store closures.

Major high street brands LK Bennett and Claire’s both closed all their stores in April, having previously fallen into administration.

And clothing chain River Island shut stores, including one at Westgate Oxford.

River Island previously ran a store in Cornmarket Street, and switched to the Westgate centre in 2017.

Discount brand Poundland has also closed a number of stores across the UK.

Some chains, however, have also opened new stores, including M&S, which has opened a new foodhall in Abingdon. Aldi and Superdrug have also opened new stores.

The 18,000 sq ft store opened at the Fairacres Retail Park off Marcham Road in April.

A new Lidl supermarket has been given planning permission in Didcot but has not yet opened.