TG Jones, the rebranded former High Street stores of WH Smith, is facing a fresh insolvency threat after a decision on its restructuring bid was delayed by a High Court judge, the Telegraph has reported.

The retailer warned that it would struggle to pay the millions of pounds in bills due Tuesday after Mr Justice Hildyard said he needed more time to decide the case, according to the paper.

In March, TJ Jones owner Modella Capital said it was preparing to launch a formal restructuring of the chain that included closing at least 80 stores out of the approximately 480 currently operating, with further sites vulnerable if rent concessions could not be agreed.

By May, the number had risen to 150, and it was this plan that it put before the court. The delay threatens to push the retailer to collapse, putting its stores and 5,000 jobs at risk.

The Telegraph reported that lawyers acting for TJ Jones told the High Court that approval of the deal was “enormously urgent”, as without it the company would not have the money to pay tax, rent and payroll at the end of June.

Tom Smith KC, of South Square, TG Jones’s counsel, reportedly said “We haven’t got enough to pay off three, so we’d have to make a choice as to which two to pay out of the three.”

Mr Justice Hildyard said that the case was “too complex”, and that although he was “very much aware” of the financial pressure the business faced, he would not rule before Wednesday morning.

According to the Telegraph, TG Jones executives were attempting to figure out how to handle the delay Monday night. The company faced a total bill of £14.1 million on Tuesday, with a further £3.1 million due to suppliers on Friday.

Mr Smith told the court that the company faced an £8 million shortfall by the end of the week unless the deal was approved, which would unlock a £15 million loan from Modella Capital.

Some councils have reportedly threatened to send bailiffs to stores to seize goods if they fail to settle their business rates.

Although the deal has been backed by a majority of TJ Jones’ creditors, some voiced their opposition to the court on Monday.

British Land, which abstained from a creditor vote on the deal, raised objections to parts of the plan, with its legal council saying that “when a plan is sanctioned, it becomes the blueprint for the next one”.

A representative for St Albans city council also raised concerns, saying it was “worried” the deal was “compromising the public purse”.

TJ Jones did not immediately respond for a request for comment on its present situation.

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