TGJones restructuring plan waved through by court

After a delay, the brand’s plan, which includes the closure of 150 shops and rent cuts on hundreds more to support the turnaround of its business, has this morning been approved by a judge.

The business had warned yesterday that the judges’ delay on the ruling, which was originally due earlier this week, put the retailer’s more than 480 stores on the brink of collapse.

With the plan now approved, a source close to the business said that the brand could press on as a going concern, while trying to address some of the key issues facing it as a hangover from its previous incarnation as WHSmith’s high-street arm.

TGJones chief executive Alex Willson said: “We welcome the court’s approval of our restructuring plan. This decision allows us to move ahead with our turnaround strategy.

“The plan protects the substantial core of the store estate and makes TGJones a stronger, more sustainable business. We are incredibly grateful to all the colleagues, partners and stakeholders who engaged constructively throughout the process, and to Modella Capital for its continued financial commitment”.

He added: “I know what a challenging period this has been for everyone connected with the business, particularly our colleagues, who have shown incredible resilience throughout. Thank you to each of you for your hard work, care and commitment.

“It’s this team, and the potential I’ve seen since joining, that gives me confidence we can build a stronger, more sustainable business for the long term. We will now be fully focused on investing in our stores, offering customers better value and service and supporting colleagues through the change ahead.

“There is a lot of work to do and some of the decisions we need to make won’t be easy. But today’s outcome means we can now focus on delivering the plan. Thank you to our partners, suppliers and other stakeholders who have supported us through this process. Now it’s time to roll up our sleeves and really move forward.”