High street retailer TG Jones, which underwent a rebranding earlier this year, is reportedly facing the closure of up to 100 of its UK stores. This significant move comes less than a year after the chain was acquired by Modella Capital, as its new owner battles to secure a new debt deal to keep the business afloat.
Sky News reports that Modella Capital is actively working to restructure its finances for TG Jones. The potential store closures are understood to be part of a broader strategy to streamline the business and reduce its operational costs, following what has been described as a challenging trading period.
The exact number of stores at risk and the specific locations have not yet been disclosed. However, any closures would undoubtedly lead to hundreds of job losses across the country, impacting local communities and the wider retail sector.
TG Jones, formerly known as Jones & Sons, was rebranded following its takeover, with Modella Capital aiming to revitalise the long-standing high street presence. However, the current economic climate, coupled with existing pressures on brick-and-mortar retail, appears to have complicated these turnaround efforts.
While specific financial details of the debt deal being sought by Modella Capital are not publicly available, such agreements often involve lenders providing new capital or renegotiating existing terms in exchange for operational changes, which can include store rationalisation.