WH Smith Sells High Street Stores to Hobbycraft Owner in £76m Deal

WH Smith focuses on travel shops as High Street stores rebrand to TGJones

WH Smith has sold its historic High Street business to the owner of Hobbycraft, Modella Capital, for £76 million. The deal ends over 230 years of WH Smith shops on UK high streets, marking a major shift in the company's direction.

What’s Changing?

• WH Smith’s 480 High Street stores will be handed over to Modella Capital.
• The brand will be phased out and rebranded as TGJones.
• About 5,000 employees are affected, though no details have been given about potential changes to jobs or stores.

Why Is WH Smith Selling?

WH Smith is moving away from the High Street to focus entirely on its growing travel retail business.

• The company now has around 1,200 shops in airports and train stations across 32 countries.
• These travel stores now generate 85% of WH Smith’s total profits.
• Chief Executive Carl Cowling said the company is now fully focused on expanding its international travel business.

“Now is the right time for a new owner to take the High Street business forward,” he said.

Who Is Buying the High Street Stores?

Modella Capital, which also owns Hobbycraft, has bought the High Street business.

• It beat Alteri Investors in the final stage of the bidding process.
• Modella is known for investing in struggling retail brands and helping them recover.
• The new brand, TGJones, will replace WH Smith in town centres after a short transition period.

Sean Toal, the current CEO of WH Smith’s High Street division, will continue to lead the business under the new ownership.

What Happens Next?

• All stores, staff, and assets will transfer to Modella Capital.
• WH Smith branding will remain temporarily during the transition.
• There’s still uncertainty over job security, store closures, and how Modella plans to improve the business.

In Summary

WH Smith is leaving the High Street after over two centuries to focus on its profitable travel shops. Its High Street stores will get a new name and owner, but the future for staff and local shops remains unclear.

Source: (SKY.com)