Court approval will be sought today and tomorrow for the restructuring of embattled TGJones, which has won backing from some of its main landlords.
The restructuring of TGJones, the former WHSmith high street division owned by investor Modella, has drawn the support of more than 80% of landlords of its top shops in a vote last week, The Guardian reported.
The Post Office, which has branches in many TGJones stores, and some suppliers, have also given their support. However, other classes of landlords, who will be hardest hit by rent cuts under the plan, opposed it.
According to the newspaper, 72% of business rates creditors – in the main local councils – supported the restructuring, and less than a third of general creditors, including greetings card makers and pen brands, were in favour.
No landlords of unwanted stores, whose rents will be cut to zero or the stores closed, backed the plan. As many as 150 branches face closure as a result of the restructuring as TGJones seeks to stabilise and rebuild.
However, for the plan to proceed, it needs only the approval, measured as backing from 75% or more, from one class of creditors and from a High Court judge.
There are two court hearings scheduled relating to the two TGJones companies which are being restructured. One is expected to take place today, and the second tomorrow.
TGJones has faced trading difficulties since its purchase out of WHSmith, in part because of shoppers’ unfamiliarity with the new brand name.
No comments yet