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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, MUCH TO THE SADNESS OF LOYAL SHOPPERS.
WILLIAM MORGAN Reporter 04:34, 05 Jun 2025Updated 05:10, 05 Jun 2025 WHSmith has confirmed it's on course to finalise the sale of its iconic UK stores to Hobbycraft owner Modella
Capital by month's end, marking the end of an era for WHSmith shops on the British High Street. The agreement, struck in March and putting a £76 million price tag on the high street
empire, will see the familiar WH Smith signage replaced by the TGJones brand. As part of the acquisition, roughly 480 shops and their 5,000 employees will transition to Modella
Capital's ownership. Ahead of the finalisation, WHSmith has reported that its travel division – the outlets sprinkled across airports, railway stations, and hospitals – is thriving,
with like-for-like sales climbing by 5 per cent in the last quarter. The high street chain's handover to Modella Capital, helmed by the same bosses behind Hobbycraft, will usher in a
new era as the WHSmith name bows out from town centres, to be replaced by new TG Jones branding. READ MORE: 'I looked like an alien when fillers gave me psoriasis - but I found miracle
product'READ MORE: 'Bromance' is over as Elon Musk launches another scathing attack on Trump's 'big, beautiful bill' Article continues below The group's
travel sector, which has been the star performer in recent years, encompassing over 1,200 stores in 32 countries, remains untouched and continues to be the main profit driver, reports
Bristol Live. The high street stores, now deemed a "much smaller part" of the business, are set for a complete overhaul under their new owners. Group chief executive Carl Cowling
remarked: "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." Article continues below The
transaction with Modella Capital lands at an enterprise value of £76 million on a cash and debt-free basis, with the investment firm known for its portfolio in retail including names like
Paperchase and Tie Rack. This past August, Modella Capital bagged arts and crafts giant Hobbycraft for an amount they kept under wraps. The offloading of WHSmith comes after what seemed like
an eternity of speculation with various potential buyers believed to be jostling to claim the iconic British retailer. The transaction ending with Modella's acquisition has seen
WHSmith amid rumours and negotiations with multiple potential buyers, including private equity firms Hilco and Alteri showing keenness after the sale initiative kicked off late last year.