The WH Smith name is set to disappear from UK High Streets after more than two centuries, following the sale of the company’s retail arm to private equity firm Modella Capital.
Modella, which owns Hobbycraft and The Original Factory Shop, will take over 480 WH Smith stores located on High Streets, in shopping centres and retail parks across the UK, along with around 5,000 staff. However, the iconic WH Smith name will be retained for the company’s travel business, which includes outlets in airports, train stations, and hospitals.
The newly acquired stores will be rebranded under the name TGJones. In a comment to the BBC, Modella said the name was chosen because it carries “the same sense of family” as WH Smith, which it described as an “iconic” British brand. It also confirmed that Post Office counters within 195 of the stores, as well as Toys “R” Us concessions, would remain.
In a statement issued to BBC News, Modella added: “It will be business as usual while we work on changes to the store chain, including introducing new product ranges and building on the strengths of the existing offer.”
The deal comes amid major changes in consumer habits and challenges on the High Street, with shoppers increasingly favouring online services and discount retailers. WH Smith has faced criticism in recent years for the state of its stores, most notably on social media, where one parody account — @WHS_Carpet — gained popularity by highlighting the poor condition of its store flooring.
Group chief executive Carl Cowling described the £76m sale as “a pivotal moment” for WH Smith, which now plans to focus exclusively on its fast-growing travel division.
Speaking to the BBC, Cowling said: “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.”
Retail analysts have widely predicted that Modella will conduct a detailed review of the performance of the acquired stores. Nicholas Found of Retail Economics told the BBC the WH Smith travel arm had become the “engine room” of the group, generating 75% of revenue and 85% of trading profit in 2024. He added: “WH Smith stores typically have short leases, which opens opportunity to streamline unprofitable stores, particularly as a number of High Street locations are in desperate need of costly investment.”
Catherine Shuttleworth, of retail consultancy Savvy, said the acquisition could offer a new lease of life for many town centres. “It remains to be seen what the new owners will do with the space,” she said. “But there are clear opportunities to integrate Hobbycraft more fully into the High Street, appealing to younger consumers interested in creative hobbies.”
Financial analyst Susannah Streeter of Hargreaves Lansdown said the rebrand would take time to embed. “It will take time to resonate with the British public, and many will mourn the loss of a High Street brand which has been a hub for shoppers for more than two centuries,” she commented. “Nevertheless, there is sure to be interest piqued at how the new owners can revitalise sales — and whether prices will be more competitive to help the chain turn a corner.”
WH Smith’s travel retail division now operates more than 1,200 stores in 32 countries, and will be the sole focus of the business going forward.
