Latest news with #Hobbycraft
The Independent
14 hours ago
- Business
- The Independent
The big change looming for WH Smith shoppers
WH Smith is set to finalise the sale of its UK high street chain to Modella Capital, owner of Hobbycraft, by the end of this month for £76 million. The deal will result in WH Smith stores on British high streets being rebranded as TG Jones, with approximately 480 stores and 5,000 employees transferring to Modella Capital. WH Smith's travel division, including shops in airports, train stations, and hospitals, reported a 5 per cent increase in like-for-like sales for the quarter ending 31 May. Half-year results in April revealed a 25 per cent decline in profits for the high street chain, falling to £20 million, prior to the impending sale. Russ Mould, investment director at AJ Bell, said that WH Smith needs to step up its performance, particularly in the US, after selling its UK arm.
The Independent
14 hours ago
- Business
- The Independent
WH Smith could disappear from UK high streets within weeks
WH Smith is on track to finalise the sale of its UK high street chain to Modella Capital, the owner of Hobbycraft, by the end of this month. The £76 million deal, agreed upon in March, will result in the WH Smith brand being replaced by TG Jones on British high streets. As part of the agreement, approximately 480 stores and 5,000 employees will transition to Modella Capital's ownership. In an update released ahead of the sale's completion, WH Smith reported strong performance in its remaining travel division, which includes shops in airports, train stations, and hospitals. Like-for-like sales in this division increased by 5 per cent in the quarter ending 31 May. The company did not disclose third-quarter figures for the high street arm due to the impending sale. However, half-year results in April revealed a 25 per cent decline in profits for the chain, falling to £20 million. In the UK, its travel arm delivered a 6 per cent rise in like-for-like sales over the third quarter, with airport shops outperforming the rest of the estate, with a 7 per cent 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 per cent but were up 7 per cent on a total and constant currency basis. In the rest of the world, like-for-like sales were 7 per cent higher and surged by 12 per cent 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. Russ Mould, Investment Director at AJ Bell, said: 'With the sale of its high street business set to complete in a matter of weeks, WH Smith's trading update presents a picture of what the slimmed-down company looks like going forward. It's all about convincing time-pressed travellers to pay a premium for goods on the go. 'It's a starting point for investors to better understand the shape and potential of the business, and to get a feel for growth rates over the long term from what is essentially now a travel-hub company with a few shops in hospitals on the side. With that in mind, there is a sense that investors might be expecting more from WH Smith than it is currently delivering. 'The US has been a laggard for the group in recent years and has some catching up to do. Overall, WH Smith needs to step up a gear and prove it was worth flogging the cash cow that was the UK arm.'
Yahoo
16 hours ago
- Business
- Yahoo
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. Sign in to access your portfolio
The Independent
16 hours ago
- Business
- The Independent
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.
Wales Online
17 hours ago
- Business
- Wales Online
WHSmith 'on track' to start disappearing from High Street this month
WHSmith 'on track' to start disappearing from High Street this month Every branch of WHSmith on High Streets across the country will disappear from the end of this month A WHSmith shop WHSmith today said it is on track to complete the sale of its UK high street chain to Hobbycraft owner Modella Capital by the end of the month. The move will mean the end of WHSmith shops on the High Street. 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. WHSmith has agreed to sell its UK high street chain to Hobbycraft owner Modella Capital. All 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. The deal will see the WHSmith name disappear from high streets and replaced by brand TGJones. 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. Article continues below That makes up the bulk of its sales and profits, and has grown to more than 1,200 stores across 32 countries. High street shops have become a 'much smaller part' of the group, its boss said. Group chief executive Carl Cowling 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. 'As our travel business has grown, our UK high street business has become a much smaller part of the WHSmith Group. High Street is a good business; it is profitable and cash generative with an experienced and high-performing management team. 'However, given our rapid international growth, now is the right time for a new owner to take the high street business forward and for the WHSmith leadership team to focus exclusively on our travel business. I wish the High Street team every success.' The sale to Modella Capital represents an enterprise value of £76 million on a cash and debt-free basis. Modella Capital specialises in investing in retailers. It has previously put money into chains including Paperchase and Tie Rack. In August, it snapped up arts and crafts retailer Hobbycraft for an undisclosed sum. The WHSmith 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. Article continues below It is understood that private equity groups Hilco and Alteri were among parties to raise interest over a possible takeover move, after WHSmith launched the process late last year.
