TG Jones, the retailer formerly known as WH Smith's high street business, has warned it is on the brink of insolvency after a High Court judge delayed a ruling on its restructuring plan.
The company said it faces a £14.1million bill today and could struggle to meet tax, payroll and rent payments without court approval of the rescue deal, which would unlock a £15million loan from owner Modella Capital.
TG Jones is seeking permission to close up to 150 stores and reduce rents across hundreds more as part of its turnaround. The business operates around 480 stores and employs about 5,000 people.
Tom Smith KC, representing the retailer, told the court: “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.”
Mr Justice Hildeyard said the case was “too complex” and that he needed more time to consider the evidence before issuing a decision, which is not expected before Wednesday.
The restructuring plan had secured backing from most creditors after Modella improved its proposals, although some landlords and local authorities continued to raise concerns about the impact on creditors and public finances.
FSTE100
The UK's flagship share index, the FTSE 100, was up 17-points at 10,501 shortly after opening this morning.
Brent crude oil futures were down 0.53%, sitting at $73.52 a barrel this morning.
Companies reporting
- J Sainsbury - Q1 Trading Statement