WHSmith brand to disappear from high streets following sale of stores

WHSmith has confirmed the sale of its high street retail business to Hobbycraft owner, Modella Capital, as it looks to focus operations on its higher growth travel retail markets.

The historic newsagents will retain its 1,200 stores in hospitals, train stations, airports and motorway services in 32 countries, which will continue to trade under WHSmith brand name.

In a £76 million deal, Modella Capital will takeover all 480 high street stores across the UK, including in Stockport town centre, with approximately 5,000 staff transferring employment to the group. With use of the WHSmith brand omitted from the deal, stores will be rebranded as TGJones.

Following the purchase of WHSmith’s high street business, Modella Capital adds to its portfolio of UK retailers which also include Hobbycraft anf The Original Factory Shop. The firm is also understood to be among bidders for a takeover of homewares retailer, Lakeland. Alongside the brand, WHSmith will also retain ownership of online greetings cards retailer, funkypigeon.com.

Commenting on the sale, WHSmith Group Chief Executive, Car Cowling said:

“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.“