Whsmith 'on track' to start disappearing from high street this month

EVERY BRANCH OF WHSMITH ON HIGH STREETS ACROSS THE COUNTRY WILL DISAPPEAR FROM THE END OF THIS MONTH NEIL SHAW Assistant Editor 07:44, 04 Jun 2025 WHSmith today said it is on track to

complete the sale of its UK high street chain to Hobbycraft owner Modella Capital by the end of the month. The move will mean the end of WHSmith shops on the High Street. The deal, which was

agreed in March and values the high street chain at £76 million, will see the WH Smith name disappear from British high streets and be replaced by brand TGJones. All of the approximately

480 stores and 5,000 staff working for the high street businesses will move under Modella Capital’s ownership as part of the deal. In an update ahead of the sale completing, WH Smith said

its remaining travel division – which includes shops in airports, train stations and hospitals – had performed well with like-for-like sales up 5% in the quarter to May 31. WHSmith has

agreed to sell its UK high street chain to Hobbycraft owner Modella Capital. All the approximately 480 stores and 5,000 staff working for the high street businesses will move under Modella

Capital’s ownership as part of the deal. The deal will see the WHSmith name disappear from high streets and replaced by brand TGJones. The travel division, which has become the key focus of

the group in recent years and also includes shops in hospitals, will not be changing. Article continues below That makes up the bulk of its sales and profits, and has grown to more than

1,200 stores across 32 countries. High street shops have become a “much smaller part” of the group, its boss said. Group 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.” The sale to Modella Capital represents an enterprise value of £76 million on a cash and

debt-free basis. Modella Capital specialises in investing in retailers. It has previously put money into chains including Paperchase and Tie Rack. In August, it snapped up arts and crafts

retailer Hobbycraft for an undisclosed sum. The WHSmith sale follows a period of uncertainty where a number of potential buyers were believed to be in the running to snap up the historic

chain. Article continues below It is understood that private equity groups Hilco and Alteri were among parties to raise interest over a possible takeover move, after WHSmith launched the

process late last year.