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

Small suppliers including the charity Help for Heroes are to lose at least half the money owed to them by the former WH Smith high street chain if a planned restructure is voted through this week. The books to paperclips retailer, which has 450 stores, was bought by the private equity firm Modella Capital last year and rebranded TG Jones. It has said it is likely that it will have to call in administrators if creditors, including shop landlords, do not approve an amended restructuring plan, seen by the Guardian, designed to cut costs in a vote on Wednesday. Dozens of “exit contract” suppliers, which TG Jones does not wish to work with in future, including toy makers and greetings card companies, are expected to have debts owed to them by the retailer wiped out if the proposal is approved. They would retain the right to a share of any profits over a certain level from the retailer – which is now loss-making – in three years’ time. Under the plan, other suppliers listed by the retail group as “non-core” – including the veterans charity Help for Heroes – will receive less than half the money they are owed, with the rest not paid in full for three and a half years. …