WHSmith has agreed to sell its UK high street chain to Modella Capital in a £76 million deal, the company has announced.
The stores will soon rebrand as TGJones, marking a major shift in the retailer’s presence on the high street.
The sale does not include WHSmith’s travel locations, such as airport and train station stores, nor does it involve the WHSmith brand itself.
Instead, approximately 480 high street stores and 5,000 staff will transition to Modella Capital’s ownership. As part of the deal, the high street estate will rebrand as TGJones, the company confirmed.
WH Smith Group CEO Carl Cowling described the sale as a pivotal moment for the company as it sharpens its focus on the booming travel retail sector.
He said: "As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel."
WHSmith agrees plans to sell ALL UK high street stores in mega £76m dealGETTY
While WHSmith’s high street division remains profitable and cash-generative, Cowling said the company’s rapid international growth made it the right time to hand over the high street arm to a new owner.
He continued: "High Street is a good business… However, given our rapid international growth, now is the right time for a new owner to take the high street business forward."
The decision comes amid rising costs for UK retailers, with increases in minimum wage and employer National Insurance contributions—introduced by Chancellor Rachel Reeves—expected to add £20 million to WH Smith’s cost base this year.
The sale signals a major shift in WHSmith’s 233-year history, as it moves away from the UK high street and doubles down on lucrative travel retail operations worldwide.
A Modella spokesperson said: “We are delighted to have been the successful bidder for one of the UK’s most iconic retail businesses. WHSmith stores are present in prime locations across many towns and cities across the country, and for more than two centuries have been an important feature in the UK retail landscape.
“Today, over one million customers visit these stores every week. Modella Capital believes strongly in the future of the high street, and we are delighted to have the opportunity to take a heritage brand and develop it further in the coming years. “TGJones feels like a worthy successor to the WHSmith brand. Jones carries the same sense of family and reflects these stores being at the heart of everyone’s high street.
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WHSmith's high street arm currently operates 500 stores across the UKPA“There will be a handover period in the immediate term, and it is very much business as usual whilst we work closely with the management team to define and execute a strategy to introduce new ranges and other offerings in the future.
“This very welcome addition to our portfolio follows a number of recent acquisitions, including Hobbycraft, Create & Craft, Crafter’s Companion and The Original Factory Shop."
