WHSmith Sells UK High Street Stores in £76m Deal
WHSmith is ditching the UK high street after more than two centuries. The iconic retailer has signed a £76 million deal to sell its entire UK high street retail business to private investment firm Modella Capital. Around 500 stores will be handed over and eventually rebranded as TGJones, marking a dramatic shift as WHSmith zeroes in on its booming global travel retail division.
Focus Switches to Travel Retail Powerhouse
The sale underlines WHSmith’s sharp pivot to travel retail. The firm’s shops in airports, train stations, and hospitals across 32 countries now rake in 75% of group revenue and 85% of trading profits. Group CEO Carl Cowling called the move “a pivotal moment” for the business:
“As we continue to become the leading global travel retailer, this is a pivotal moment for WHSmith. The high street business is profitable and cash generative, but with our rapid international growth, now is the right time for a new owner to take it forward.”
What’s In the Deal?
The sale includes all high street stores, their employees, assets, and liabilities. Modella Capital will take over operations and roll out the TGJones rebrand after a brief transition period under the WHSmith name.
No immediate closures are planned, but WHSmith had earlier announced it would shut 15 stores amid a high street shake-up.
The End of an Era on Britain’s High Street
WHSmith opened in 1792 and became a staple of UK high streets. Yet dwindling footfall and shifting shopping habits hit profitability hard. Its high street outlets now contribute just 15% of the group’s annual trading profit, prompting this historic exit.
Looking to the Future
“With a clear strategy, a strong balance sheet, and operations in high-growth markets, we’re set to deliver big growth and value for stakeholders,” Cowling added.
As WHSmith refocuses on travel hubs worldwide, the future of its classic UK high street presence now lies with Modella Capital.
