Top News

TG Jones is facing a race against time to avoid collapse after lenders were warned the retailer could be pushed into administration by the end of July if they fail to back drastic restructuring plans. The chain - formerly known as WH Smith's high street business - may be shutting up to 150 stores as part of a major turnaround bid led by owner Modella Capital.

Creditors have been told the investment firm is prepared to inject around £35 million into the struggling retailer in a bid to keep the business afloat. However, the rescue package hinges on lenders approving the restructuring proposals, with the company warning the business could enter administration if a deal is not agreed by July 31.

The overhaul comes after eight stores were already closed earlier this week, with further closures expected to result in job losses. The restructuring plan will need backing from creditors before also being signed off at a High Court hearing scheduled for June 29.

A spokesman for TG Jones earlier this week said the decision to launch the overhaul had "not been taken lightly" and described it as an "essential part of the company's turnaround".

The company also blamed the retailer's "forced name change from WH Smith" for damaging public awareness of the brand.

It further claimed Government policies which have pushed up business costs had also contributed to the company's struggles.

The chain was renamed TG Jones last year after Modella bought the former WH Smith high street arm, while WH Smith retained its travel business operating in airports and railway stations.

Before the sale, the travel division accounted for the vast majority of the group's sales and profits and has since expanded to more than 1,200 stores across 32 countries.

Separate reports on Wednesday also suggest Post Office branches inside TG Jones stores could also be affected by the restructuring plans.

Around 100 stores are reportedly at risk of closure, including branches in Ipswich, Swindon and Oxford - with Ipswich Post Office set to close on June 6.

Reports said about 400 of the chain's 480 stores are expected to remain open.

The restructuring comes less than a year after the TG Jones rebrand.

A Post Office spokesman said they were "seeking alternative retail locations" for affected counters.