WHSmith’s iconic brand is to disappear from UK high streets after more than two centuries, after Modella Capital agreed a deal to acquire its portfolio of around 480 retail outlets, along with a support centre in Swindon, according to a report by Bloomberg.
The move, confirmed in a statement by WHSmith on Friday, marks the end of the retailer’s long-standing presence in the high street market, though the brand will persist through its travel division. Modella plans to rebrand the acquired stores under the name TGJones.
Founded in 1792, WHSmith has long been a fixture on British high streets, specialising in books, newspapers, magazines, and stationery. However, shifting consumer behaviours, coupled with fierce competition from online retailers, have led to a significant decline in demand.
In recent years, the company has relied on aggressive cost-cutting measures to offset falling sales, but its high street operations have struggled to regain momentum.
The sale to Modella Capital reflects the growing challenges facing traditional UK retailers, which are navigating higher operational costs due to tax hikes outlined in Chancellor Rachel Reeves’ recent budget.
WHSmith’s decision to exit the high street follows a broader trend, with other major retailers, including struggling discount chain Poundland, also being sold off to refocus on more profitable business lines.
This move will enable WH Smith’s management team, led by CEO Carl Cowling, to focus on its thriving travel division, which operates in airports, hospitals, and train stations across 32 countries and accounts for around three-quarters of the company’s total revenue.
Despite the challenges, Modella Capital sees value in the acquired properties, noting the prime locations of many of the stores. The owner of brands such as Hobbycraft and The Original Factory Shop reportedly outbid competitors, including Apollo-backed Alteri, which owns the Bensons for Beds chain.
Modella’s purchase is expected to further fuel the debate on whether WHSmith underinvested in its high street business, which has frequently been criticised for a lack of upkeep, with images of worn-out carpets and poorly maintained stores circulating on social media.
The £76m ($98m) enterprise value of the deal, expected to be finalised in the last quarter of WHSmith’s current financial year, reflects the short-term leases and the absence of the WHSmith brand in the transaction.
Following the announcement, WHSmith’s stock price dropped by as much as 4.4% in London.
Modella Capital intends to preserve store collaborations with the Post Office and Toys “R” Us, both of which were part of WHSmith’s efforts to drive footfall to its high street locations.
Under the new ownership, the stores will continue to operate with Sean Toal, the current CEO of the high street business, remaining in place.
