The struggling retailer was acquired last year by Hobbycraft-owner Modella Capital after WH Smith sold its high street arm to focus exclusively on the travel business.
Modella, which renamed the 234-year chain TG Jones, wants to turn the business around by closing up to 150 of the 451 stores alongside swingeing rent cuts and redundancies. On Monday, lawyers told the court that the retailer’s financial position was "horrendous", arguing that it faced a cash shortfall of almost £8m by the end of this week due to rent, pay and tax deadlines falling due.
Despite criticising the short amount of time given to the court to consider the case, Mr Justice Hildyard on Wednesday approved the sweeping restructuring.
TG Jones chief executive Alex Willson welcomed the decision. "The plan protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business," he said.
Most of TG Jones’ main landlords gave their approval last week, but others - including British Land - have been critical of the proposal. Other creditors also voted against but the plan only required majority approval from one class of creditor and a high court judge to succeed.