WH Smith to disappear from the high street as all shops sold in £76m deal

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WH Smith will disappear from the High Street after an agreement to sell his British High Street business to the investment firm Modella Capital, owner of the arts and craft trader Hobbycraft, for £ 76m.

The move will eventually see that the famous WH Smith name is replaced by the TGJONES brand.

The sale only affects the traditional places of Smith and does not include the profitable travel trade companies working in airports and train stations.

The agreement includes approximately 480 High Street stores and transfers about 5,000 employees to Modella Capital’s ownership. The future of the WH Smith brand itself remains safe as it is not included in the sale.

The travel department, which has become the main focal point of the group over the past few years and also includes stores in hospitals, will not change.

It forms most of its sales and profits and has grown to more than 1,200 stores in 32 countries.

High Street stores have become a ‘much smaller part’ of the group, his boss said. WH Smith’s High Street stores contribute only 15 percent of the group’s total profit.

Group CEO Carl Cowling said: “As we continue to deliver our strategic ambition to become the leading global travel trader, this is an important moment for WHSmith, as we become a business focused exclusively on travel.

“As our travel business has grown, our British High Street business has become a much smaller part of the WHSmith group.

“High Street is a good enterprise; it is profitable and cash -generative with an experienced and well -performing management team.

“Given our fast international growth, now is the right time for a new owner to take the High Street business forward and focus for the WHSmith leadership team exclusively on our travel industry. I wish the High Street team every success.”

The travel section, which has become the most important focus of the group over the past few years and also includes stores in hospitals, will not change

The sale to Modella Capital represents a £ 76m business value on a cash and debt-free basis.

Modella Capital specializes in investment in retailers. It has previously put money into chains, including Paperchase and Tie Rack.

In August, it picked up the arts and craft trader Hobbycraft for an unknown amount.

The WH Smith selling follows a period of uncertainty where there are apparently a number of potential buyers to renovate the historic chain.

It is clear that the private equity groups Hilco and Alteri were under parties to arouse a possible takeover, after WHS Smith launched the process late last year.

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