WHSmith to disappear from high street as all 480 stores sold in £76million deal

WHSmith to disappear from high street as all 480 stores sold in £76million deal

WHSmith has agreed to sell its UK high street chain to investment firm Modella Capital in a deal valuing £76million. The stores will eventually rebrand as TGJones – meaning the WHSmith name will disappear from town centres.

However, the struggling books and stationery retailer will keep hold of its more profitable travel locations, so shops in airports and train stations. These will remain open and will continue to operate under the WHSmith brand, which is not included as part of the sale. WHSmith has around 480 high street stores in the UK compared to its over 1,200 travel stores across 32 countries. WHSmith says its travel arm accounts for 85% of group profits.

Modella Capital, which is known for snapping up troubled retailers and previously acquired Hobbycraft and The Original Factory Shop, was one of two remaining parties that were bidding for WHSmith. WHSmith had reportedly been weighing up offers from Modella Capital and Alteri Investors.

It comes after WHSmith confirmed earlier this year that it was considering a “potential sale” of its high street stores to focus on its travel locations. The retailer had been slowly closing high street locations over the last few months.

The retailer has shut nine shops this year, in locations including Basingstoke, Winton, Rhyl, and Bolton, with at least another six stores set to close in April. WHSmith previously told the BBC that the Post Offices within its shops will remain if the sale of its high street estate goes ahead.

WHATSAPP GROUP: Get money news and top deals straight to your phone by joining our Money WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.

NEWSLETTER: Or sign up to the Mirror’s Money newsletter here for all the best advice and shopping deals straight to your inbox.

Carl Cowling, Group Chief Executive, said: “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel.

“We have a highly successful travel business, operating in fast growing markets in 32 countries and we are constantly innovating to deliver strong returns and meet our customers’ and partners’ needs.

“Our travel business currently accounts for around 75% of the group’s revenue and 85% of its trading profit. With the ongoing strength in our UK travel division, and the scale of the growth opportunities in both North America and the rest of the world, we are in our strongest ever position to deliver enhanced growth as we move forward as a pure play travel retailer.

“As our Travel business has grown, our UK high street business has become a much smaller part of the WHSmith Group. High street is a good business; it is profitable and cash generative with an experienced and high-performing management team.

“However, given our rapid international growth, now is the right time for a new owner to take the high street business forward and for the WHSmith leadership team to focus exclusively on our travel business.

“I wish the high street team every success. As we look forward as a simplified, travel-focused group, I am excited about the Group’s future prospects. With a clear strategy, a strong balance sheet, and operations in high growth and attractive markets, we are well-positioned to generate substantial growth and value for all stakeholders.”

Get our money-saving tips and top offers direct to your inbox with the Mirror Money newsletter