WH SMITH

A high court has approved TG Jones’s restructuring plan, enabling the private equity-owned retailer to close up to 150 of its circa 450 stores as part of a turnaround. The plan, backed by key landlord classes and Modella Capital, includes steep rent cuts for many landlords and writing off at least half of debts owed to small suppliers. TG Jones says the move will protect the core estate and make the business more sustainable, though thousands of jobs and many creditor claims will be affected. » More on theguardian.com

WH Smith shares fell about 15.4% to 416.6p and hit an intraday 52‑week low after a second profit warning this year and the announcement of a capital raise. The company cut pre‑tax profit guidance for the year ending 31 August to £75–90m (previously £90–105m) and will issue up to around 26m new ordinary shares (about 20% of the capital) to raise financing. The Executive Chair and Group CFO have committed to subscribe for a combined c. £1.725m; the measure is intended to reduce leverage to around two times by the end of FY2026. Management cited deteriorating trading conditions, geopolitical instability and weaker consumer confidence with lower travel demand as reasons for the forecast revision. » More on de.investing.com

WH Smith issued a profit warning after a fall in airport passenger numbers linked to the Middle East conflict, with North American airport revenues down 2% in the seven weeks to 6 June. The group now expects pre-tax profits of £75m–£90m, down from prior guidance of £90m–£105m. WH Smith plans to raise about £100m by issuing roughly 26m new shares, will take a £150m non-cash impairment and intends to close or reconfigure unprofitable stores. Management cited weaker consumer demand, increased promotions and inflation headwinds and said it is pursuing a self-help programme to strengthen the business. » More on theguardian.com