The chief executive of TG Jones has warned creditors that the former WH Smith high street business will run out of cash if they reject plans aimed at saving the chain.
The retailer, which employs around 5,000 people across 450 stores, including its outlet at Aberdeen’s Bon Accord shopping centre, is seeking approval for a restructuring that could see up to 150 outlets close while reducing rents for remaining sites.
Alex Willson, who took over in March, told The Sunday Times: “We just don’t have the cash to continue. I’ve been very open with the colleagues in the business that (collapse) will happen if the (court) hearing doesn’t get passed.
“Yes, it’s a punchy restructuring plan, but this is the one opportunity where we can save TG Jones.”
The company and owner Modella Capital have improved terms for landlords, including offering them a greater share of future profits, but British Land said it still considers the proposals “unacceptable”.
A court hearing on the restructuring is scheduled for the end of June. Failure to secure approval would put the future of the retailer and thousands of jobs at risk.
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