Up to 150 former WHSmith high street stores will close as part of a succession deal.

The owner of TG Jones has received approval for a deep restructuring of WH Smith’s former High Street business, which will see up to 150 shops close and significant rent cuts at most of the remaining stores.

Model Capital bought the chain last year and has since rebranded it under the TG Jones name. Currently, there are 451 stores employing 4,700 workers.

WH Smith travel stores, train stations and airports, were not part of the deal and the business retained rights to the historic brand.

But less than a year later, Modela announced a radical restructuring plan, blaming “difficult retail conditions.”

As well as the store closings, some 120 landlords will not receive any rent for up to three years. And rent is reduced between 15% and 75% at hundreds of other stores.

Modela said the plans are critical to the survival of the business and will use some of the cost savings to invest in stores as part of its turnaround strategy.

The High Court heard this week that the retailer is on the brink of bankruptcy and faces a cash shortfall of almost £8m unless a rescue deal is approved later this week.

Tom Smith Casey, for TG Jones, told the hearing that the business was “very distressed” and “running on fumes at the moment”.

He said the business could have run out of cash in April had it not been for arrears, including a £10m loan from Modela and a huge tax bill from HMRC.

Modela said some of the problems were long-term sales declines due to heavy investment in stores by previous owners.

But he blamed “difficult retail conditions” and a failure to protect the WH Smith brand for the current weak marketing.

There was strong opposition to the plans, led by property owner British Land, who described them as “fundamentally unfair”. Modela sweetened the deal with several concessions, which convinced British Land to drop its objections. Many suppliers are also taking a big financial hit.

Business will end at 302 stores in a restructuring plan that will see how many landlords exercise their right to terminate leases rather than accept reduced rents.

The judge, Mr Justice Hildyard, had to decide whether the restructuring was fair – whether creditors would be worse off than planned if the retailer went into administration.

Mr Justice Hildyard gave the green light to Model’s plans this morning. He did not state his reasons in court, saying the summary of the verdict was being published.

TG Jones chief executive Alex Wilson welcomed the court’s approval.

He said: “This decision allows us to move forward with our transformation strategy.

“The scheme will preserve the core of the shop estate and make TG Jones a stronger and more sustainable business.

“We are extremely grateful to the colleagues, partners and stakeholders who have constructively engaged in the process and to Modela Capital for their continued financial commitment.”