First newly branded WHSmith is unveiled after it was revealed iconic name would vanish from British high streets

Daily Mail​

02-07-2025

The first newly branded WH Smith has been unveiled after it was revealed the iconic name of the iconic British high street chain would be changed as part of its sale.
The 233-year-old brand has been a staple in Britain's town centres for centuries, having been founded by Henry Walton Smith in London in the Georgian era.
And just days after the finalisation of a multi-million pound deal, residents in Bromley, south east London saw the new branding taking effect.
At the end of June, the retailer completed the sale of its business for less than initially agreed after a demand slowdown forced the renegotiation of terms.
The group agreed a £76million sale of the high street business to Hobbycraft owner Modella in May as it transitions to a 'pure play' travel retailer, focusing efforts on its stores in train stations and airports.
As part of the sale, the iconic WH Smith brand name was replaced with the TGJones brand.
A WH Smith store on High Street in West Wickham, was spotted with a simple bright blue sign with white writing spelling out TG Jones.
New owners Modella said TGJones 'carries the same sense of family and reflects these stores being at the heart of everyone's high street', but does not refer to a 'specific person'.
Modella - which is also looking at buying Lakeland - took over the 480 stores and 5,000 staff working in retail parks, shopping centres and on the high street last week.
While stores are already seeing new signs going up, the renaming of shops does not extend to WH Smith's travel locations in airports and train stations, which will stay as 'WH Smith'.
The travel division, which has become the key focus of the group in recent years and also includes shops in hospitals, will not be changing. That makes up the bulk of its sales and profits, and has grown to more than 1,200 stores across 32 countries.
Modella Capital specialises in investing in retailers. It has previously put money into chains including Paperchase and Tie Rack.
Last August, it snapped up arts and crafts retailer Hobbycraft for an undisclosed sum. It then bought The Original Factory Shop last month.
Sean Toal, chief executive of the new TGJones business, said: 'Selling the High Street business has been a significant milestone for the WHSmith Group, and I am delighted that we have agreed a sale with Modella Capital who, I know, will be supportive new owners.
'I'm incredibly proud of everything we've achieved as a high street team and this next chapter presents exciting opportunities for growth, innovation, and continued success for the business and our talented colleagues.
'I have every confidence that under Modella's leadership, the business will go from strength to strength, and I look forward to all that we can achieve together in the future.'
The WH Smith sale follows a period of uncertainty where a number of potential buyers were believed to be in the running to snap up the historic chain.
It is understood that private equity groups Hilco and Alteri were among parties to raise interest over a possible takeover move, after WH Smith launched the process late last year.
The original sale was completed for a reduced fee after its owners said 'the future of the high street business under a change of ownership has led to a more cautious outlook amongst stakeholders', and demand had softened.
This has 'resulted in a reduction in the ongoing cash flow of the business', the group said, leading to Modella seeking amendments to the transaction.
WH Smith will now receive an up-front consideration of £10million at completion, and up to £20million of deferred consideration whereby the retailer and Modella equally share in the cash flow generation of the business to August 2026.
It will also receive up to £10m of additional proceeds based on 'timing and realisation of certain tax assets within the high street business', WH Smith said.
The group added: 'WHSmith expects gross cash proceeds of up to £40million.
'This compares to the previous announcement of £52million of gross cash proceeds. Transaction and separation costs remain unchanged at £27million.
WH Smith shares sank 5.5 per cent to 1,067p in early trading.
The retailer also told shareholders it now expects headline net debt as at 31 August 2025 to be around £425million.