WHSmith sells high street stores – which will be renamed TGJones
Modella Capital will take over WHSmith’s 480 high street stores and 5,000 staff.
As the deal does not include the WHSmith’s name, stores will be renamed TGJones, but will keep existing Toys-r-us and Post Office concessions.
Modella said it would be “business as usual” while it worked on changes to the chain including adding new ranges.
Private investment group, Modella Capital also own high street stores, The Original Factory Shop and Hobbycraft. It has also previously put money into chains including Paperchase and Tie Rack.
The WHSmith brand will continue in its travel locations in airports and train stations as well as in hospitals. WHSmith’s say its travel locations make up the bulk of its sales and profits.
WHSmith will also continue to own its personalised greetings card business, funkypidgeon.com.
Carl Cowling, WHSmith’s Chief Executive, 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.
“We have a highly successful Travel business, operating in fast growing markets in 32 countries and we are constantly innovating to deliver strong returns and meet our customers’ and partners’ needs. Our Travel business currently accounts for around 75% of the Group’s revenue and 85% of its trading profit.
“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.”
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