### WHSmith to Vanish from High Streets as Sale to Modella Capital Nears Completion
WHSmith, a fixture of Britain’s high streets for over two centuries, is on the verge of a historic transformation. The longstanding retailer has confirmed it remains “on track” to finalise the transfer of its entire UK high street business to Modella Capital, the owner of Hobbycraft, by the end of June. This strategic move signals an end to the WHSmith brand’s direct presence on high streets nationwide, marking a significant milestone in the company’s history.
The £76 million deal, first announced in March, will see approximately 480 WHSmith high street branches transferred to Modella Capital’s portfolio. Around 5,000 staff members are expected to make the transition along with the stores as the new owner introduces its TGJones brand in place of the well-known WHSmith signage. Modella Capital, known for its focus on retail investments, will assume control of the entire high street operation and is expected to direct its own vision for the stores’ future.
As the new era dawns, it has been made clear that WHSmith’s travel division is to remain under the group’s umbrella. This part of the business, encompassing shops in airports, train stations, and hospitals, now forms the backbone of WHSmith’s operation and profitability. Boasting over 1,200 travel-based outlets across 32 countries, these locations have been credited with a 5% increase in like-for-like sales to the end of May, underlining their growing importance to the group’s financial health.
Chief executive Carl Cowling outlined the rationale behind the sale, describing it as a “pivotal moment” for the group. “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this marks a significant transition. The high street business, while profitable and well-managed, has become a much smaller part of the WHSmith Group,” Cowling observed. He acknowledged the achievements and dedication of the high street team, wishing them success under new management.
The transition comes after months of speculation regarding the future of WHSmith’s high street sites, which have gradually declined in significance amid the retailer’s push towards travel-focused retailing. Over the past decade, changing consumer habits, increased competition, and the shift to online shopping have contributed to the erosion of traditional high street retailing, with WHSmith adapting its business model to reflect new trends.
Modella Capital, with a track record in revitalising well-known high street names, brings experience from earlier investments in retailers such as Paperchase and Tie Rack. The acquisition of Hobbycraft last August further cemented its reputation for seeking out retail opportunities. The purchase of WHSmith’s high street portfolio is expected to fit within Modella’s broader strategy, although observers will be watching closely to see whether rebranding as TGJones can revitalise stores left behind by their former parent company.
The sale itself follows a competitive period where various parties expressed interest in acquiring the high street business. Private equity groups including Hilco and Alteri were among those rumoured to have explored takeover bids since WHSmith began seeking a buyer late last year. Ultimately, it was Modella Capital’s proposal that secured the board’s approval.
For many, the final disappearance of the WHSmith name from the high street will represent the end of an era, particularly given its legacy as one of the UK’s oldest retailers. Yet, the company’s leadership remains resolutely focused on future growth overseas and in travel retail, seeing the divestment as an opportunity to consolidate its global ambitions. As the end-of-month deadline approaches, staff and customers alike await the next chapter in the brand’s remarkable journey.