WH Smith confirms the sale of its high-street shops, but has not said anything about jobs

The WH Smith brand will disappear from high streets after the private equity firm Modella Capital agreed to buy its 480 stores.

Modela, who acquired Hobbycraft in the past year, is rebranding the chain to TGJones and keeping the Post Office outlets which operate at many branches.

Earlier estimates indicate that around 5,000 employees in high-street shops could be facing uncertainty regarding their jobs.

WH Smith continues to be a travel shop brand at airports, railway stations and hospitals.

Carl Cowling, the chief executive of the WH Smith Group, said in a statement that the PS76m sales was “a pivotal event” for the firm.

He said: “High Street is a profitable business, with a high-performing and experienced management team.”

“However given our rapid growth internationally, it is now the right time for the new owner to move the high-street business forward.”

WH Smith’s travel division now has over 1,200 stores in 32 countries. This business accounts for more than three quarters of the company’s annual revenue, and 85% trading profit.

The deal is expected to be completed later this year. Sean Toal will lead TGJones. He currently leads the high-street division.

Since opening its first shop in London in 1792, WH Smith is a mainstay on local high streets.

Cowling said: “I am excited by the future prospects of this group as we move forward in a simpler, travel-focused way.” We are in a good position to create substantial value and growth for all our stakeholders with a clear and strong strategy, a solid balance sheet and operations in attractive and high-growth markets.

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