Modella to improve TGJones restructuring terms after facing opposition

Modella is now working on a revised offer to landlords of TGJones stores, Sky News reported. It must win creditor and court approval to proceed with a restructuring plan for the business, the rebranded former WHSmith high street division.

The restructuring is expected to lead to the shuttering of up to 150 TGJones branches.

TGJones’ restructuring plans drew opposition from property giant British Land Earlier this month. British Land described them as “fundamentally unfair” because they would mean hefty rent reductions affecting the owners of profitable stores as well as poorly performing ones.

Modella did not comment, but a source familiar with developments told Sky that it was likely that the terms would be modified before a vote by creditors.

Modella bought WHSmith’s high street business last year. However, it has since suffered amid tough trading conditions, higher business costs, and consumer unfamiliarity with the TGJones name.

Last week, TGJones chief executive Alex Willson – who previously turned around Modella-owned Hobbycraft – promised lower prices, in-store changes, and more staff hours, assuming the restructuring plan wins approval. 

He argued: “The business has genuine talent, real potential, and is well worth saving! If we can get through this restructuring, and beyond, then the road to recovery is there for the taking…”