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Former WH Smith’s small suppliers to lose at least half of debts in rescue plan

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Former WH Smith’s small suppliers to lose at least half of debts in rescue plan
Small suppliers face losing at least 50% of the money owed to them by the 450-store high street chain TG Jones, formerly WH Smith, under a controversial restructuring plan. 

Bought last year for £76m by private equity firm Modella Capital, the loss-making retailer warns it will likely face administration if creditors do not approve the rescue deal. The plan completely wipes out debts owed to dozens of “exit contract” suppliers, including independent toy and greeting card makers, offering only a potential share of future profits in three years. 

Meanwhile, non-core suppliers will lose over half their money, with remaining balances delayed for three-and-a-half years and major suppliers will also face delayed payouts. Part of a wider turnaround involving a £35m investment, this proposal could also close up to 150 stores. 

More on this story at the Guardian
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