British Land opposes ‘unacceptable’ TG Jones restructuring plan

Property giant British Land will oppose a restructuring plan launched by the owner of the TG Jones retail chain, according to Sky News.

The property group stated that the proposals submitted by Modella Capital to slash rents across hundreds of high street stores were “fundamentally unfair”. British Land has instructed law firm Hogan Lovells to contest the current terms ahead of an upcoming creditor vote.

Modella Capital acquired the former WH Smith business last year and aims to close more than 100 loss-making shops under the plan. The investment firm warned that the 234-year-old retail business faces collapse if creditors reject the financial restructuring.

Documents sent to creditors revealed that the high street chain suffered a severe drop in sales after losing the rights to use the WH Smith brand name. Modella Capital has previously overseen insolvency processes at retailers Claire’s, The Original Factory Shop, and Wynsors World of Shoes.

Representatives for TG Jones stated that the turnaround plan remains essential to preserve thousands of high street jobs. The retailer indicated that the parent company is injecting more than £35m to support the business during the process.

British Land told Sky News: “We recognise the challenging conditions facing many retailers and always seek to support customers who genuinely need it. However, the scale and structure of Modella’s restructuring plan for TG Jones are unacceptable.”

A spokesperson for TG Jones also told the outlet: “Modella Capital is making more than £35m of financial contributions to support this restructuring. Any suggestion that the plan amounts to a transfer of value to the shareholder at landlords’ expense is completely incorrect.

“The restructuring plan is vital to the survival of this 234-year-old business, along with the preservation of thousands of jobs. We remain open to constructive engagement with all creditors and urge them to consider the plan on its merits.”