WHSmith name to disappear from high streets after sale
The WHSmith name is set to disappear from towns and cities across the UK following a sale of its high street division to Modella Capital worth £76m.
The retailer’s entire high street estate – which comprises around 480 stores – will move under Modella Capital’s ownership. All of the stores will continue to trade under the WHSmith brand during a transitionary period, before being rebranded as TGJones.
WHSmith’s travel division – which makes up 75% of its revenue and 85% of its trading profit – is not included in the sale.
Under Modella Capital’s ownership, the high street business will be led by Sean Toal, its current CEO.
WHSmith has been a staple on British high streets since the first store was opened on London’s Little Grosvenor Street in 1792.
Carl Cowling, group chief executive of WHSmith, 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.”
The new owner, Modella Capital, also owns Hobbycraft and The Original Factory Shop, and is also reportedly eyeing a takeover of kitchenware retailer Lakeland.