TG Jones, the retailer formerly known as WH Smith’s high street business, has warned it is on the brink of insolvency after a High Court judge delayed a ruling on its restructuring plan.
The company said it faces a £14.1million bill today and could struggle to meet tax, payroll and rent payments without court approval of the rescue deal, which would unlock a £15million loan from owner Modella Capital.
TG Jones is seeking permission to close up to 150 stores and reduce rents across hundreds more as part of its turnaround. The business operates around 480 stores and employs about 5,000 people.
Tom Smith KC, representing the retailer, told the court: “We haven’t got enough…