WHSmith stores safe from mass closures for 12 months
The new owner of WHSmith’s high street business has been restricted from carrying out mass store closures for at least 12 months.
Modella Capital acquired the retailer’s high street business earlier this year for £76m, however under the terms of the transaction the group is prohibited from initiating a company voluntary arrangement or undertaking mass closures for the first year of its ownership.
WHSmith’s travel division – which makes up 75% of its revenue and 85% of its trading profit – was not included in the sale.
The retailer’s entire high street estate, comprising around 480 stores, will continue to trade under the WHSmith brand during a transitionary period, before being rebranded as TGJones.
WHSmith has been a staple on British high streets since the first store was opened on London’s Little Grosvenor Street in 1792.
This comes as Modella Capital also plans to close nine Hobbycraft stores as part of a company voluntary arrangement. A further 18 could also shut their doors if negotiations with landlords for lower rents fall through.