UK retailer TG Jones has secured a London court approval for a restructuring plan featuring significant rent reductions and a new capital injection from owner Modella Capital.

Judge Robert Hildyard sanctioned the plan, which includes a £15m ($19.9m) cash injection from Modella Capital, the private equity firm that bought the retailer from WH Smith just over a year ago.

Under the plan, rents will be sharply reduced across TG Jones' 451-store estate, with numerous outlets paying nothing for several years.

Roughly 150 landlords are anticipated to end their leases in response, according to the business plan filed with the court and cited by Bloomberg.

The restructuring adds to a run of UK retail rescue deals in which private equity owners have pushed landlords into accepting substantial rent reductions to protect their holdings.

The outcome represents another difficult investment for Modella.

Claire's and The Original Factory Shop, both bought by the firm – established by turnaround specialist Jamie Constable – fell into administration in January, under a year after their acquisitions.

In April, Claire’s shut its remaining UK shops, bringing the jewellery and accessories chain’s presence on British high streets to an end after nearly three decades.

Court filings showed TG Jones had faced running out of funds by April, a situation averted by a £10m injection from Modella together with the postponement of more than £8 million in tax payments.

Lawyers – cited in Bloomberg’s report – told the court that without the arrangement, the company would have been unable to cover payroll, tax and supplier obligations due this week.

Its funding gap is projected to widen to £26.3m by August, the filings indicate.

Last month, Poundstretcher, owned by US hedge fund Fortress Investment Group, obtained court approval for a rescue plan that scrapped rent entirely at certain loss-making locations.