The proposals would also see substantial rent cuts across many remaining branches
TG Jones, the high street name that took over the majority of former WHSmith stores, could close roughly 100 branches as part of a new debt deal.
Sky News reports that its owner Modella wants to replace existing lender Secure Trust Bank (STB) as part of a major restructuring plan, which could see hundreds of jobs lost.
At the time of its sale by WHSmith, the chain employed about 5,000 people.
The proposals would also see substantial rent cuts across many remaining TG Jones branches. City sources told Sky News that investment group Aurelius is said to be the favourite to replace STB.
A spokesman for Modella told PA back in March: “The economic conditions for all retail businesses are tough.
“The combination of cost inflation, weak consumer confidence and adverse Government fiscal policies puts significant pressure on all retailers.
“Against this backdrop, the management of TG Jones is working hard to turn around this important retail business, and they are drawing on the best available advice in doing so.
“TG Jones’ management and Modella Capital are committed to building a sustainable future for this important UK business.”
The Mirror has contacted Modella for additional comment. WHSmith agreed to sell its UK high street chain to Modella last year in a deal valuing £76million.
WHSmith kept hold of its more profitable travel locations, so shops in airports and train stations and these continue to operate under the WHSmith brand.
In more retail news, it was announced last month that Claire’s has shut all its 154 high street shops across the UK and Ireland.
Administrators for the fashion accessories chain said that around 1,300 workers will be made redundant as a result.
The move does not affect the retailer’s 356 concessions, including many in Asda stores, and its head office.
The retailer – which is known for its jewellery, clothing accessories and ear-piercing services – was founded in the US and first launched in the UK in 1996.
It quickly expanded across UK high streets, but has come under pressure from low-priced online competitors in recent years.
The closures come after private equity owner Modella hired Kroll to oversee the administration earlier this year.
Modella, which also owns former WH Smith high street business TG Jones and Hobbycraft, placed the brand into insolvency after it was hit by “alarming” weak Christmas trading.
