TG Jones High Street Limited, Re

Facts

TG Jones High Street Limited (HSL) and TG Jones Retail Holdings Limited (RHL), together the Plan Companies, formed part of the Modella Capital Limited group, which had acquired WH Smith PLC's high street retail business in 2025 and re-branded it as "TG Jones". The Plan Companies had incurred substantial losses for several years, reflecting retail sector headwinds and historic under-investment in the store estate, and by early 2026 faced a critical liquidity crisis, requiring emergency funding of £10m from Modella and facing default under their secured facilities unless restructuring plans were sanctioned by the end of June 2026. Pursuant to Part 26A of the Companies Act 2006, the Plan Companies proposed the HSL Plan and RHL Plan, compromising the claims of secured creditors, the Post Office, eleven classes of Landlord Creditors and various unsecured creditors, while Modella retained its equity. At the convening hearing on 3 June 2026, Marcus Smith J directed plan meetings and dismissed an adjournment application by the British Land Company plc landlords ("the BL Landlords"). Following negotiated modifications, the BL Landlords withdrew most of their opposition, but several creditor classes voted against the Plans. At a two-day Sanction Hearing on 29-30 June 2026, Hildyard J sanctioned the Plans, giving a Summary of Reasons on 1 July 2026, and this judgment elaborates his full reasoning at the BL Landlords' request.