The owner of TG Jones, the entity that bought WHSmith's High Street business last year and promptly renamed it something nobody recognizes, has won court approval for a sweeping restructuring. The plan will shutter up to 150 stores and slash rents on most of the remaining 451 locations, which employ 4,700 workers.

Modella Capital, the private equity firm that acquired the chain, blamed 'challenging retail conditions' for the radical overhaul less than a year after purchase. As part of the deal, some 120 landlords will receive no rent for up to three years, and rent on hundreds of other stores will be cut by 15% to 75%. Modella claims these measures are vital for survival and that savings will be reinvested in a turnaround strategy.

The High Court heard the retailer was on the brink of insolvency, facing a cash shortfall of nearly £8m by the end of this week. Tom Smith KC, representing TG Jones, described the business as 'highly distressed' and 'running on fumes.' The company would have run out of cash in April without a £10m loan from Modella and a deferral of liabilities, including a large tax bill from HMRC.

Landlords, led by British Land, opposed the plan as 'fundamentally unfair' until Modella sweetened the deal with concessions. Suppliers are also taking a big financial hit. The judge, Mr Justice Hildyard, approved the plan this morning, calling it 'objectively, the lesser of two evils' compared to administration.

TG Jones CEO Alex Willson welcomed the decision, saying it 'protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business.' The restructuring forecasts the business will end up with 302 stores, depending on how many landlords choose to terminate leases rather than accept reduced rents.