UK retailer TG Jones’s restructuring plan was approved in court, allowing the company to avoid bankruptcy, at least for now. Under the plan, private equity owner Modella Capital will give the bookstore chain, which was formerly WH Smith, a £15 million loan, in addition to the £10 million loan they gave in April, the Independent reports. “We welcome the court’s approval of our restructuring plan,” TG Jones ceo Alex Willson said. “The plan protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business. We are incredibly grateful to all the colleagues, partners and […]
Bankruptcy
TG Jones Restructuring Plan Expected to Win Approval This Week
The draconian restructuring plan to keep UK bookstore chain TG Jones (FKA WH Smith) operating is expected to win court approval after hearings Monday and Tuesday, as at least some creditor groups have agreed to accept owner Modella Capital’s terms. Unnamed sources have told the media (including the Telegraph, Bloomberg and the Guardian) that “a number of key creditor groups, landlords among them, have accepted TG Jones’ proposal before the court hearing.” Property development company British Land, after loudly objecting, “said it would…abstain from voting following what it described as material concessions from TG Jones to treat landlords more fairly.” […]
TJ Jones, fka WH Smith, Could Go Bankrupt in June if Restructuring Isn’t Approved
TG Jones, the UK bookstore chain that was known as WH Smith before it was acquired by Modella Capital last year, will go bankrupt almost immediately if their restructuring plan isn’t approved by a judge, the Bookseller reports. According to documents obtained by the Bookseller, the retailer will run out of funding “on or around the end of June 2026” and their court date will be on or about June 29. The company’s draconian restructuring plan includes staff layoffs and closing from 100 to 150 of the chain’s 480 locations, as well as “considerable investment in stores.” Eight stores are […]
Baker & Taylor Files for Bankruptcy
Baker & Taylor has filed for Chapter 11 bankruptcy, five months after announcing that they would shut down operations and liquidate assets. The filing indicates that the company has between $1 million and $10 million in assets and owes in the range of $100 million to $500 million in liabilities to between 1,000 and 5,000 creditors. B&T’s largest debts are to publishers, libraries, and for corporate real estate, including $23.3 million owed to Penguin Random House, $16.5 million to Simon & Schuster, $15.5 million to Harper Collins, and $3.8 million to Macmillan’s distribution arm MPS. The 20 largest claims on […]
Lectorum Publications to Liquidate and Close
Lectorum Publications, the largest distributor of Spanish-language books in the US, is closing its Pine Brook, NJ headquarters and liquidating its inventory. An auction is being held on December 4 for over 700,000 new and used Spanish-language books and other materials. The company has been in business for almost 65 years, and also served as Spanish-language publisher in the US for translations of children’s books including works by Kate DiCamillo, and Kevin Henkes, and from the Magic Tree House series.
Unbound/Boundless Co-Founder Apologizes After Resignation
Co-founder of Unbound and Boundless John Mitchinson said he is “more sorry than words can say” in a statement about his resignation from the company after months of financial turmoil and criticism over unpaid debts. Mitchinson explained that he completely severed ties with the company because of “the revelation last week that the investment money we had been promised in May was going to fall substantially short,” so the company could not fulfill its planned payments of monies owed to authors from prior to the bankruptcy sales. (This is a new explanation for the abrupt change in plans.) Seven other […]