TG Jones’s rescue plan faced fresh creditor opposition days before a crunch vote aimed at preventing the collapse of one of Britain’s biggest retailers.
Sky News reported that Modella Capital, which bought WH Smith’s former high street chain last year, wants to close up to 150 TG Jones stores. It also wants to pay no rent on 120 shops for three years.
Several creditors told Sky News they remained sceptical after TG Jones improved the plan through an enhanced profit-share arrangement.
British Land said the revised proposal still did not go far enough. It is called the scale and structure of the plan unacceptable.
The landlord said the proposal would place most of the restructuring burden on property owners. It also objected to deep rent cuts on profitable stores at fair market rents.
Sky News said British Land owns fewer than 10 TG Jones stores. M&G and Land Securities also formally objected to the plan.
One creditor told Sky News that the amended profit share “does not go far enough.” The creditor also criticised a loan to TG Jones set at 12% over the base rate.
A TG Jones spokesperson said the company had engaged constructively with landlords and other creditors.
The spokesperson said improved terms showed its commitment to reaching a satisfactory outcome for stakeholders.
A judge is expected to decide by the end of the month whether to approve the restructuring plan. TG Jones faces insolvency if the court rejects it.
