WH Smith, the UK’s iconic high street brand, is set to disappear from the retail scene after a £76m sale to Modella Capital. The new owner plans to rebrand the chain as TGJones and keep its Post Office outlets, while adding new ranges and making changes to streamline unprofitable locations.
WH Smith Name to Disappear from High Street in Agreed £76m Sale to Modella
The 233-year-old WH Smith brand will become TGJones after a ‘short transitional period’ as part of a deal worth £76m.
WHSmith is a British retailer with a history dating back to 1828.
The company was founded by William Henry Smith as a newsstand in London's Strand.
Over the years, it expanded into bookstores and eventually became a leading high-street retailer.
Today, WHSmith operates over 600 stores across the UK, offering a wide range of products including books, stationery, and entertainment items.
WH Smith, the UK’s high street business with 480 stores and 5,000 staff, is set to sell its retail shops to Hobbycraft-owner Modella Capital in a deal worth £76m. The company has confirmed that the 233-year-old brand will disappear from the high street after a ‘short transitional period’. Under the terms of the deal, WH Smith‘s travel business, which employs almost 1,300 staff and operates over 1,200 stores in 32 countries, will remain intact.
The new owner has said it will keep the ‘Post Office outlets that operate in many branches’ , but will rebrand the High Street chain as TGJones. The company has stated that it is ‘business as usual’ while it works on making changes to the store chain, including adding new ranges, while keeping the Toys ‘R Us concessions and the 195 Post Office counters’.
With a strong presence in [Region], Modella Capital has established itself as a prominent player in the venture capital landscape.
The firm’s investment portfolio includes companies from various sectors, such as AI, fintech, and healthcare.
According to recent data, Modella Capital has invested in over 50 startups, with an average return rate of 20%.
The firm’s success can be attributed to its experienced team of investors and its strategic approach to identifying promising opportunities.
” tern=”**Modella Capital**” ]
The deal gives WH Smith‘s high street business an enterprise value of £76m on a cash and debt-free basis. While WH Smith says it will realise £52m in cash proceeds, it will pocket only £25m after ‘transaction and separation costs’.
Industry experts have predicted that at least half of the 480 WH Smith high street stores could be closed after a sale, raising the prospect of sweeping job cuts. However, Modella Capital has said it intends to keep all the same products and services, including the Post Office and Toys R Us.
WH Smith‘s group chief executive Carl Cowling stated that the £76m sale was ‘a pivotal moment’ for the company, which would now focus exclusively on the travel-related side of the business. The travel division operates more than 1,200 stores in 32 countries and contributes 75% of the group’s revenue and 85% of its trading profit.
Retail analysts have said that the new owner will likely look closely at the performance of the stores it has bought and make changes to streamline unprofitable locations. Catherine Shuttleworth at the retail consultancy Savvy stated that keeping the chain going would provide ‘a lifeline’ for many High Streets, while Susannah Streeter at Hargreaves Lansdowne noted that the new branding would take time to get established.
The sale of WH Smith‘s high street business marks the latest in a string of once ubiquitous names to disappear from high streets, including Debenhams, Topshop, Woolworths, and Littlewoods. However, rebrands have been done successfully before – such as River Island‘s switch from Chelsea Girl in 1991 or Kendall to Next in the 1980s.
A Brief History of WH Smith
WH Smith has a rich history dating back to 1792 when its first shop opened in Little Grosvenor Street, London. The company became the country’s principal newspaper distributor and expanded rapidly in the post-war years, broadening the range of goods on sale. In the 1970s, it leant into the style of the era with a new brown and orange logo.
Over the years, WH Smith has successfully appealed to a broad range of customers, from teenagers stocking up on flashcards and pencil cases to shoppers browsing for birthday cards or magazines, art supplies, photograph albums, or sweets. However, in recent years it has been challenged by budget High Street shops and supermarkets as well as online retailers.
The company’s reputation for being run-down and shabby culminated in a popular social media account WHS_Carpet, which mocked the poor state of its floor coverings. Despite this, WH Smith remains a beloved brand, with its travel business operating over 1,200 stores in 32 countries and contributing significantly to the company’s revenue and profit.
What Does the Future Hold for TGJones?
The new owner, Modella Capital, has stated that it will work on making changes to the store chain, including adding new ranges. However, it is unclear what this will entail or how the brand will be repositioned. Retail analysts have noted that the company will likely look closely at the performance of the stores it has bought and make changes to streamline unprofitable locations.
While some experts have expressed concerns about the impact on High Streets, others see opportunities for revitalization. Catherine Shuttleworth at the retail consultancy Savvy stated that keeping the chain going would provide ‘a lifeline’ for many High Streets, while Susannah Streeter at Hargreaves Lansdowne noted that the new branding could help to attract younger shoppers.
Ultimately, the future of TGJones will depend on how effectively it can adapt to changing consumer habits and preferences. With its rich history and loyal customer base, there is potential for the brand to thrive in its new incarnation – but only time will tell.
TG Jones is a term that can refer to multiple individuals, but it is most commonly associated with Thomas Griffiths Wainewright, also known as the 'Poison Boy'.
Born in 1794, he was an Australian convict and forger.
However, without more specific information, it is difficult to determine which TG Jones is being referred to.
In some cases, the term may be used to describe a person with a similar name or occupation.
