WH Smith as a brand is set to disappear from the high street after it agreed to sell its 480 shops to private equity firm Modella Capital.
Modella, which acquired Hobbycraft last year, will rebrand the high street chain as TGJones, and will keep the Post Office outlets that operate in many branches.
Neither company has confirmed what this will mean for employees of WH Smith, but earlier estimates suggest that there are around 5,000 staff in high-street stores who could face uncertainty about their jobs.
WH Smith will continue to operate as a brand in travel shops at airports and railway stations, as well as hospitals.
High street jobs
In a statement, WH Smith group chief executive Carl Cowling said the £76m sale was “a pivotal moment” for the company.
“High street is a good business; it is profitable and cash generative with an experienced and high-performing management team,” he said.
“However, given our rapid international growth, now is the right time for a new owner to take the high street business forward.”
WH Smith’s travel business now has more than 1,200 stores across 32 countries, accounting for three-quarters of its annual revenue and 85% of its trading profit.
Modella bought the brand for £76 million and the deal will complete later this year. Sean Toal, who leads the high street division currently, will head up TGJones.
WH Smith has been a staple of local high streets since opening its first store in London in 1792.
Cowling added: “As we look forward as a simplified, travel-focused group, I am excited about the group’s future prospects. With a clear strategy, a strong balance sheet, and operations in high growth and attractive markets, we are well-positioned to generate substantial growth and value for all stakeholders.”
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