TGJones on brink of collapse as judge delays ruling

The high street retailer, which formerly traded as WHSmith, said that it will struggle to pay millions of pounds worth of bills due on Tuesday after the judge stated he needed more time to decide the complex case.

TGJones had sought court approval on Monday (June 29) for its restructuring plan, which includes the closure of 150 shops and rent cuts on hundreds more to support the turnaround of its business.

The retailer’s lawyers told the High Court that its approval was “enormously urgent” as the company had tax, payroll and rent payments worth £14m due on June 30.

“We haven’t got enough to pay off three, so we’d have to make a choice as to which two to pay out of the three,” said Tom Smith KC of South Square, TG Jones’ counsel.

Mr Justice Hildeyard said he was “very much aware” of the financial pressures facing the business, but that the case was “too complex” and he needed more time to review transcripts of previous meetings.

It is understood that the judge will not make a ruling before Wednesday morning (July 1).

Smith said TGJones is facing an £8m shortfall to its £14.1m bill owed this week. It already owes suppliers £4m, £3.4m in business rates and £8.4m to the taxman.

The restructuring plan was expected to gain quick approval after drawing support from more than 80% of landlords of its top shops.