TG Jones, the retailer that previously operated under the WH Smith brand, has applied to the High Court for approval of a restructuring plan aimed at preventing the company from collapsing into insolvency.

The court heard on Monday that the business faces a cash shortfall of £8million by the close of this week if the plan, which would see around 150 stores forced to close, is not accepted.

Tom Smith KC, representing TG Jones, described the company as "highly distressed" following what he termed a "long-term sales decline".

According to his submissions, meeting obligations for tax, rent, supplier payments and staff wages this week would leave the retailer unable to cover its financial commitments.

This injection would follow a £10million loan the company already received from its owners back in April. The proposal also requires landlords to accept lower rental payments across the estate.

TG Jones was created when Modella acquired the high street division last year, with the original WH Smith name retained solely for travel retail outlets at airports and railway stations.

The chain currently operates approximately 450 shops employing around 4,700 workers, the majority based within the UK.

In written submissions to the court, Mr Smith outlined the broader difficulties confronting British retail.

He stated: "As is well known, the UK retail sector has faced serious trading difficulties in recent years."

Mr Smith attributed the sector's struggles to a combination of economic pressures.

"The problems facing the sector have their roots in macroeconomic factors such as high inflation, the shift to online shopping, reduced consumer spending, higher labour costs and increased taxes.

Said restructuring is expected to result in the closure of roughly 150 stores, according to Mr Smith, who described this as the "working assumption".

Landlords unwilling to accept the reduced rental terms would have the option to end their leases, a mechanism that would drive the anticipated closures.

Mr Smith told the court: "That will assist in ensuring the future of the group."

Ben Shaw KC, appearing for a group of landlords, indicated they were not opposing the plan after recent negotiations secured a deferral of rent payments during the first year.

Mr Justice Hildyard is expected to deliver his ruling on Wednesday.