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British Land Co PLC has dropped its opposition at a rescue deal to stop the collapse of high street retailer TG Jones, Sky News reported on Tuesday. The London-based real estate investment trust has now decided not to challenge the TG Jones restructuring plan, which is expected to lead to the closure of up to 150 stores. Instead, British Land is planning on abstaining on the proposals later this week. Sky News reported that the decision follows ‘eleventh-hour talks’ before creditors vote on the deal, with ‘thousands’ of jobs at risk if the plan is not voted through. TG Jones, which is owned by the investment firm Modella Capital, has climbed down on a number of proposals. Sky News reported that sources said these relate to rent payments at profitable stores and protections for landlords if the chain goes bust. Responding to an enquiry from Sky News, a British Land spokesperson said on Tuesday: ‘Following detailed discussions with TG Jones over the last few days, and a number of material concessions made by the company to mitigate unfairness caused to landlords, British Land has agreed to withdraw its objection to the plan, and will abstain from voting. ‘The company’s proposal is now materially different to the one originally advanced, with rent reductions for Class A and B stores kept open being repaid after 3 years and landlords given security to guarantee the payment, as well as a share of 50pc of the company’s [earnings before interest, tax, depreciation and amortisation] that is not reinvested in the business.’ British Land added: ‘This establishes an important point of principle for restructuring plans, which should not be used to penalise landlords who are providing profitable stores at a fair market rent, all for the benefit of shareholders who won’t invest in the business themselves.’ Modella has publicly rejected criticism of its proposals, and said it would invest £35 million into the business if they were approved by a judge. Sky News previously reported that British Land was mounting a legal challenge to the deal, while the Telegraph has reported that other landlords including M&G PLC and Land Securities Group PLC were also formally objecting. An executive at another of TG Jones’s landlords said it was unjust that Modella had been ‘discounting profitable stores that on their own analysis are not overrented’. ‘Any landlord who keeps providing those stores is effectively giving a loan to the business of the amount by which the rent has been reduced but not getting paid for it at anything like the same rates as Modella is getting,’ they said. A TG Jones spokesperson said: ‘We are aware of suggestions made by a small number of landlords in connection with the restructuring plan. We have engaged constructively with these landlords, as we have with other creditors across the estate. ‘As a result of that engagement, we have improved the terms of the plan to reflect feedback received. We believe these improvements demonstrate our commitment to achieving a satisfactory outcome for all stakeholders.’ Shares in British Land were down 1.1% at 397.80 pence on Tuesday afternoon in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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