THE former WH Smith high street business is teetering on the edge of collapse.
A judge has delayed ruling on its emergency rescue plan – putting 5,000 jobs and around 480 shops at risk.
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TG Jones was created when private equity firm Modella Capital bought WH Smith’s high street estate for £76million last year and later stripped it of the famous name.
At the High Court, Tom Smith KC, for TG Jones, said approval was “enormously urgent”.
The company faced a £14.1million bill on Tuesday, plus £3.1million owed to suppliers by Friday.
He warned the business could be £8million short by the end of the week unless the restructuring deal is approved.
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It would unlock a £15million lifeline loan from Modella.
Mr Justice Hildyard said the case was too complex to rule on immediately and indicated he would not give a decision before Wednesday morning, while acknowledging the pressure on the company.
The stricken retailer already owes £4million to suppliers, £3.4million in business rates and £8.4million to the taxman.
The rescue plan would close up to 150 stores and cut rents at many others.
Most creditors backed it last week, but some landlords, councils and suppliers complained they were being asked to shoulder too much of the pain.
Modella improved the offer by promising to repay some rent cuts at key sites after three years and giving creditors a bigger share of any future profits.
St Albans council told the court it feared the deal would hurt local services, saying: “We are passing a hat around.”
It’s understood TG Jones believes administration can still be avoided, but approval this week was critical.
The retailer declined to comment on the case.
