WH Smith sells iconic high street chain, signaling major change

In late March 2025, WH Smith, the historic retail chain established in 1792, engaged in final negotiations to sell its high street division to Modella Capital, a firm known for acquiring distressed retail businesses. This deal, reportedly worth £76 million, is pivotal for WH Smith as it aims to concentrate on its more lucrative travel retail operations. The transaction involves around 480 stores across the UK, employing approximately 5,000 staff, marking a significant operational shift for the company. The decision to sell the high street stores is influenced by the increasingly challenging conditions on the high street, which have negatively impacted many traditional retailers. As WH Smith's travel division has become notably more profitable, accounting for up to 75% of the company's revenue, the management recognized that focusing on this area while allowing a new owner to rejuvenate the high street brand was a practical step. With the sale, the rebranding process for the high street chain will see it renamed as TGJones, although the WH Smith brand will continue to operate in its travel outlets at airports and train stations. The new owner, Modella Capital, intends to maintain the operations of the Post Office and Toys “R” Us outlets in the current stores while exploring opportunities to refresh the product offerings within the chain. As this transaction unfolds, the change signifies a broader trend in UK retail, where many established brands are reassessing their business models in response to evolving consumer behaviors and marketplace dynamics. WH Smith's commitment to travel retail underlines the shift towards areas that promise higher margins and customer engagement as it navigates a landscape increasingly unfavorable to high street operations.