A High Court judge who approved a rescue plan for TG Jones, the rebranded former WH Smith high street chain, has expressed significant scepticism about the retailer's chances of a successful turnaround. Mr Justice Hildyard described the recovery plan as having "all the hallmarks of an adventurous equity play" and warned that the "execution risk is very considerable", despite ultimately sanctioning the restructuring because new investment had been committed by owner Modella Capital.

The restructuring, approved last month, involves closing 150 of the retailer's 450 stores and required a legally contested "cram down" process, since most creditor groups had rejected the plan. Fewer than a third of general creditors, such as card and pen makers, backed the scheme, and no landlords facing rent cuts or store closures supported it either; small suppliers, including toy makers, stand to lose at least half of what they are owed. The judge noted the company's £3m valuation, down sharply from the roughly £40m Modella paid to acquire it just a year earlier, reflecting the high-risk nature of the turnaround.