The future of the former WH Smith store on Tavistock high street hangs in the balance, after the new owner was given the go-ahead by the High Court for a restructure.

Modella Capital owns 451 TG Jones stores across the country, including the Tavistock store, now branded as TG Jones.

The company which specialises in rescuing ailing retail chains bought WH Smith’s former High Street business last year.

However, the chain is now in financial trouble, with the new company blaming tough retail conditions and not being allowed to keep using the WH Smith name on stores for it failing to achieve a bounce back in sales.

The WH Smith stores in railway stations and airports as well as hospitals weren’t part of the deal.

The company is now poised for a radical restructure, with up to 150 stores set to close and steep rent cuts to landlords of stores which remain. Modella Capital will inject further capital into the business in a bid to turn it around.

The latest plans have been given the blessing of High Court judge Mr Justice Hildyard, who said this week: “There is plainly a high level of execution risk, as noted in two of the Expert Reports. However, I am not an economist nor a retail business expert, and I am not in a position to dismiss what is proposed as having no real prospect of success, especially since I think I am entitled to assume that Modella and management must have sufficient faith in success to hazard further money, time and effort on the turnaround plans.”

As well as store closures, some 120 landlords will receive no rent for up to three years; and rent will be cut on hundreds of other stores by between 15 per cent and 75 per cent.

Alex Willson, CEO of TG Jones, said: “We welcome the court’s approval of our Restructuring Plan. This decision allows us to move ahead with our turnaround strategy

“The plan protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business. We are incredibly grateful to all the colleagues, partners and stakeholders who engaged constructively throughout the process, and to Modella Capital for its continued financial commitment.”

The company said it was unable to comment on the future of individual stores.