WH Smith to complete sale of high street chain within weeks
WH Smith has said it remains track to complete the sale of its UK high street chain to Hobbycraft owner Modella Capital at the end of the month.
The deal, which was agreed in March and values the high street chain at £76 million, will see the WH Smith name disappear from British high streets and be replaced by brand TGJones.
All of the approximately 480 stores and 5,000 staff working for the high street businesses will move under Modella Capital's ownership as part of the deal.
In an update ahead of the sale completing, WH Smith said its remaining travel division – which includes shops in airports, train stations and hospitals – had performed well with like-for-like sales up 5% in the quarter to May 31.
It did not provide third-quarter figures for the high street arm due to the sale, but half year results in April showed the profits at the chain slumped by a quarter to just £20 million.
In the UK, its travel arm delivered a 6% rise in like-for-like sales over the third quarter, with airport shops outperforming the rest of the estate, with a 7% rise.
It said it recently opened its first Smith Family Kitchen coffee offering in an airport, as well as a new standalone bookshop.
Across its North America travel chain, comparable store sales rose 2% but were up 7% on a total and constant currency basis.
In the rest of the world, like-for-like sales were 7% higher and surged by 12% on a total and constant currency basis.
The group said: 'While we are mindful of the broader economic and geopolitical uncertainty, the group is well positioned as we enter our peak summer trading period.'
The sale of its high street arm comes after years of under-pressure sales and profits at the division, while WH Smith's travel business has grown to make up the bulk of its sales and profits, with more than 1,200 stores across 32 countries.
Buyer Modella Capital specialises in investing in retailers.
It has previously put money into chains including Paperchase and Tie Rack, while in August last year, it snapped up arts and crafts retailer Hobbycraft for an undisclosed sum.
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