WH Smith Sells High Street Division to Hobbycraft Owner Modella Capital in £76 Million Deal

WH Smith has officially sold its iconic high street retail division to Modella Capital, the owner of Hobbycraft, in a £76 million acquisition that marks the end of an era for the 233-year-old brand in UK town centres.

The move, first reported by Sky News in January, concludes a competitive bidding process between retail turnaround specialists Modella Capital and Alteri Investors. The winning bid now paves the way for the WH Smith high street stores to rebrand as TG Jones, effectively erasing the WH Smith name from Britain's high streets.

With approximately 480 High Street locations and 5,000 employees transitioning under new ownership, the sale enables WH Smith to sharpen its focus on its high-growth travel retail business, which now accounts for 85% of the company’s profits.

WH Smith’s travel arm includes 1,200 stores across 32 countries, predominantly located in airports and railway stations. The company’s CEO, Carl Cowling, described the sale as a timely strategic move:

“Given our rapid international growth, now is the right time for a new owner to take the High Street business forward and for the WH Smith leadership team to focus exclusively on our Travel business.”

Under the terms of the deal, all stores, assets, liabilities, and staff of the high street division will transfer to Modella Capital. The stores will initially operate under the WH Smith name during a short transitional period, after which they will fully rebrand to TG Jones.

Sean Toal, currently CEO of WH Smith’s High Street division, will remain in charge of the rebranded business under Modella’s ownership.

A spokesperson for Modella Capital reassured that the familiar product range and Post Office services will be retained, stating:

“TG Jones feels like a worthy successor to the WH Smith brand. ‘Jones’ carries a sense of family and community, reflecting the local importance of these high street stores.”

While the acquisition secures the immediate future of the WH Smith high street chain, questions remain about the long-term employment outlook and whether Modella plans to invest in modernising the store estate, which has faced criticism in recent years for being outdated and underfunded.

The deal comes amid ongoing scrutiny of WH Smith’s operations, including a recent HMRC investigation that labelled the company the worst offender in minimum wage violations.
Source: Sky news