Modella Capital: WHSmith to rebrand as TG Jones amid sale, are stores closing, are travel shops affected, news

• WHSmith is selling its UK high street stores to Modella Capital in a £76 million deal
• Around 480 stores and 5,000 employees will transfer to the new owner, with shops rebranding as TGJones
• WHSmith’s travel outlets, including those in airports, train stations, and hospitals, are not part of the sale
• WHSmith is shifting its focus entirely to its growing global travel business, which now drives most of its profits
• Modella Capital, which has previously invested in Paperchase and Hobbycraft, will take over the high street operations

An iconic British retailer, best known for stationery, books, and magazines, has agreed to sell its UK high street stores in a £76 million deal.

WHSmith is selling its shops to Modella Capital, which will take ownership of approximately 480 stores and 5,000 employees. WHSmith’s travel outlets, including those in airports and train stations, are excluded from the sale.

This marks the end of the WHSmith name on the high street, with stores set to be rebranded as TGJones.

The group's travel division - which has become its main focus in recent years and includes shops in hospitals - will remain unchanged. This division now accounts for the majority of the company’s sales and profits, with over 1,200 stores across 32 countries.

Meanwhile, high street stores have become a "much smaller part" of the business, according to the company's chief executive.

Carl Cowling 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.

“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.”

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What is Modella Capital?

Modella Capital was established in 2022, and is based in London. It specialises in retail investments, and has previously backed chains such as Paperchase and Tie Rack. In August, it acquired arts and crafts retailer Hobbycraft for an undisclosed sum.

Other recent aquisitions include The Original Factory Shop, a discount retail chain with 187 stores, and Crafter's Companion, a crafting company which was rescued through a pre-pack administration deal in January, saving 134 jobs.

The sale of WHSmith follows a period of uncertainty, during which several potential buyers were reportedly interested in acquiring the historic high street chain.

Will WHSmith shops disappear?

Yes, but not immediately. The approximately 480 high street stores will continue operating under their current name for now, but over time, they will be rebranded as TGJones.

TGJones is a new name created for the rebranded street stores, and doesn’t appear to have any existing history as a brand.

What do you think about WHSmith’s exit from the high street? Will you miss seeing its stores, or are you curious about what TGJones will bring? Share your thoughts in the comments section.