A High Court judge who approved a rescue and restructuring plan for TG Jones, the former WH Smith high street books-to-paperclips retailer, says the company’s turnaround faces “very considerable” risks. Mr Justice Hildyard sanctioned the restructuring, with the judgment published on Wednesday, as part of efforts to prevent the business from immediately collapsing into administration. The judge’s comments indicate doubt about the long-term prospects of the retailer despite the court approval.
Under the plan approved earlier, TG Jones closes a significant portion of its store network. The restructuring involves shutting 150 stores out of a total of 450, according to reporting on the judge’s decision. The judge characterizes the approach as carrying the hallmarks of a high-risk strategy, describing it in terms that suggest uncertainty around the ability to successfully execute the turnaround.
Overall, while the court approval allows the company to proceed with restructuring rather than immediate insolvency, the judge’s remarks emphasize that the plan still carries substantial challenges and does not guarantee recovery.
