TG Jones at risk of collapse due to £8 million shortfall

TG Jones, formerly known as WH Smith, could face insolvency without a rescue deal, according to a High Court hearing held on Monday (June 29).

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

TG Jones at risk of collapse due to £8 million shortfall

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 £8 million 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.

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

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

Landlords will have the choice to terminate leases rather than accept reduced rents under the proposed plan.

Ben Shaw KC, representing landlords, said they are not opposed to the restructuring following negotiations over deferred rent payments in the plan’s first year.

A decision from Mr Justice Hildyard is expected on Wednesday (July 1).

UK companies that have closed or entered administration/liquidation in 2026

It has been a tough 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.

UK fashion retailers Leading Labels and Quiz have also closed down after falling into liquidation.

Other retailers forced to close stores this year include:

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It’s also been reported that Morrisons is looking to sell some of its in-store pharmacies as it continues to cut costs.

Despite this, several major brands have announced new store openings for 2026, including Aldi, M&S, and Superdrug.

Which UK business that has closed this year were you most sad about? Let us know in the comments.