Home / What do landlords need to know about the restructuring of a high street giant?
19th August 2026
Abby Mercer, Solicitor
Contributors: Sapphire Ristic
For decades, WHSmith was a fixture of the UK high street. However, its recently court-approved restructuring plan has resulted in supplier debts being written off and rents for many landlords being drastically reduced. For landlords, the restructuring offers a useful insight into the impact that similar processes can have on leasehold interests and rental income.
In 2025, high street staple WHSmith was acquired by private equity firm Modella Capital and subsequently rebranded as TG Jones.
Under a “Part 26A Restructuring Plan,” Modella were able to apply to the Court to take radical action to save the TG Jones companies. As a result, a large-scale restructure was approved by the Court which compromises many debts, including those owed to landlords, with its aim being to provide financial relief to the companies.
One of the consequences of this restructure is that landlords of former WHSmith stores will see reduced rent payments for up to 36 months, with some leases receiving only a percentage of contractual rent, arrears being written off and a ban on enforcement action for landlords.
The significance of this case goes well beyond the former WHSmith. It is part of a growing trend in which commercial tenants use “Part 26A Restructuring Plans” to force rent reductions, compromise arrears and alter liabilities, without entering a formal insolvency process.
Another risk, which may be of more concern to a landlord, is the knock-on effect a reduction in the rent of one property may have on other properties of a similar nature in a landlord’s portfolio. Clearly, the wider implications this could have on negotiating new leases for other properties is one a landlord would generally wish to avoid.
To propose a Part 26A plan, like the purchasers of WHSmith, the tenant company does not need to be insolvent. It must show that it has encountered, or is likely to encounter, financial difficulties that are affecting, or will or may affect, its ability to carry on business as a going concern. It must also provide the Court with financial projections and show that without the proposal, the company is likely to go into administration.
If you are a commercial landlord and your tenant begins reducing trading hours, reducing staff numbers or closing other premises, they may be under significant financial distress.
As a first port of call, if your commercial lease does not include the following protection mechanisms, it may need to be urgently reviewed:
Further tenant monitoring is also helpful. Landlords should conduct annual tenant account reviews, have credit reporting services on your tenants, monitor CCJs and track market and press reports.
If any of the above distress signals become apparent, landlords should seek legal advice quickly. They should also meet with their tenant promptly and request financial information as well as business plan projections.
You may need to also ultimately need to consider if vacant possession if preferable, and whether a restructuring plan would be worth supporting or opposing.
Early action is key. Once a Court sanctioned restructure is in place, landlords will have very little say in the value of their rent or recovery of rent arrears.
For expert advice on commercial property disputes and insolvency please contact the Kuits dispute resolution department on 0161 832 3434 or email us at [email protected].