Up to 150 ex-WHSmith High Street stores to close as resue deal approved

Up to 150 ex-WHSmith High Street stores to close as resue deal approvedImage source, Getty ImagesByEmma SimpsonBusiness correspondentPublished12 minutes agoThe owner of TG Jones, WH Smith's former High Street business, has won approval for a sweeping restructuring which will see up to 150 shops close as well as steep rent cuts on most of the remaining stores.Modella Capital bought the chain stores last year and they were then rebranded under the name TG Jones. There are currently 451 stores employing 4,700 workers.WH Smith travel stores, in railway stations and airports, weren't part of the deal and the business kept the rights to the historic brand name.But less than a year later, Modella announced a radical restructuring plan blaming "challenging retail conditions".As well as store closures, some 120 landlords will receive no rent for up to three years; and rent will be cut on hundreds of other stores by between 15% and 75%.Modella says the plans are vital for the survival of the business and will use some of the cost savings to invest in stores as part of its turnaround strategy.The High Court heard this week that the retailer was on the brink of insolvency and was facing a cash shortfall of nearly £8m by the end of this week, unless the rescue deal was approved.Tom Smith KC, for TG Jones, told the hearing that the business is "highly distressed" and "running on fumes at the moment".He said the business would have ran out of cash in April had it not been for a £10m loan from Modella and a deferral in liabilities including a large tax bill from HMRC.Modella said some of the problems were due to serious underinvestment in stores by the chain's previous owners, saying long-term sales had declined.But it also blamed its current poor trading on "challenging retail conditions" and its inability to keep the WH Smith brand name.There was considerable opposition to the plans, led by property owner British Land who des...