The future of TG Jones which operates stores formerly under the WH Smith brand including in Kingsbridge and Totnes is looking uncertain.

According to the Sunday Times up to 100 stores could close and the future of the South Hams stores is not yet known.

Mayfair-based private equity fund Modella Capital bought the high street arm in a £40m cut price deal last year.

It is part of a private equity empire called Hay Wain chaired by investor Jamie Constable.

It took over almost 500 shops and employs around 5,000 people.

The restructuring plan would lead to steep rent cuts for landlords.

One of the main creditors is thought to be Secure Trust which lent Modella Capital £50,000 to support the acquisition last June.

The shops sell a wide range of products ranging from newspapers and magazines to cards, books and even toys and colouring-in books.

Modella Capital specialises in distressed investments and has also bought Hobbycraft, The Original Factory Shop and the UK arm of Claire’s

The Original Factory Shop and Claire’s were put back into administration last year.

The latter closed all 137 shops this month.

The deal with WH Smith, which held on to branches in locations such as hospitals, railway stations and airports was that they didn’t close stores or restructure within a year.

WH Smith was founded by Henry Walton Smith in 1792 but the name TG Jones was apparently just made up.

The restructuring will be of a relatively new sort called a ‘cram down’ which needs sign-off from a High Court judge and needs just one class of creditor.

This is unlike a traditional Company Voluntary Arangement (CVA)

The company will have to prove that the only other alternative would be going into administration and that creditors would be no worse off than if that happened.

A spokesperson for TJ Jones said: “We won’t be commenting at this time.”