Latest news with #Modella
Daily Mail
02-07-2025
- Business
- Daily Mail
First newly branded WHSmith is unveiled after it was revealed iconic name would vanish from British high streets
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.
Scottish Sun
02-07-2025
- Business
- Scottish Sun
WHSmith says goodbye to the high street after 200 years as rebranding of shops will be finished ‘within weeks'
Plus, find out the history of WHSmith over the last 200 years END OF AN ERA WHSmith says goodbye to the high street after 200 years as rebranding of shops will be finished 'within weeks' WHSMITH will be disappearing from the high street in a matter of weeks as its new owner pushes forward with plans to rebrand it to TGJones. The stationery retailer has been a staple of the British high street for 200 years but has struggled in recent years. Advertisement 4 The familiar WHSmith branding will soon be disappearing from the high street Credit: PA 4 The company was known as WH Smith & Son from 1846 after William Henry Smith took over 4 WHSmith's branding has changed over the years but it is famous for its iconic blue Credit: News Group Newspapers Ltd 4 The stores could look very different after the rebranding to TGJones is complete Credit: Alamy Hobbycraft owner Modella Capital agreed a deal to take over the chain's troubled high street arm back in March. As part of the deal, all 464 remaining high street stores are rebranding to TGJones. The sale has now officially completed and the WHSmith website has rebranded, while all stores are listed on Google as TGJones. A spokesperson for Modella told The Sun: "TG Jones is now a stand-alone business, comprising 464 stores on high streets, shopping centres and retail parks across the UK and also online, with store fascias being replaced with this branding in the coming weeks. Advertisement "This is a very positive milestone in the history of this business and an exciting moment for TGJones and its employees. A full transition to the new TGJones brand is likely to take some time. "The management of TGJones is now defining its strategy for the business, including introducing new partnerships and offerings and redefining the look and feel of TGJones stores." The Sun understands the company is currently in the process of changing the signage at its stores across the country. Some shoppers have already spotted signs going up in stores reading "Thank you for shopping at TGJones". Advertisement Modella put in planning applications to local councils to change the signage on its stores last month. Shoppers have also started receiving emails from TGJones. WHSmith sells 500 UK shops One confused customer wrote on social media: "I got an email from tg Jones thinking how? then realised its w.h smith's new name, crazy." Another added: "i keep getting emails from someone called TG Jones and it was apparently a company that has changed its name, it was failing to tell me what company… just had another one and it's whsmith??? WHAT." Advertisement TGJones chief executive Sean Toal said: "We are very excited by the potential of the TGJones business. With the committed and talented team we have in place, and with supportive owners, we can build on our heritage, while innovating and delivering a refreshed and compelling offering for our customers." History of WHSmith The rebranding means the WHSmith name will be disappearing from the high street for good. WHSmith's travel stores will still remain in airports, hospitals, railway stations and motorway service areas as these have not been taken over by Modella. The first WHSmith store was opened back in 1792 was opened by Henry Walton Smith and his wife Anna. Advertisement It was located in Little Grosvenor Street, London and was initially a news vendor. When Henry and Anna died, the business was taken over by their youngest son William Henry Smith. He renamed the business WH Smith & Son in 1846. The business began expanding around this time and opened its first railway news stand at Euston Station in 1848. Advertisement It opened its first depots two years later in Birmingham, Manchester and Liverpool. WH Smith & Son continued to be passed down by the family before becoming a limited company in 1928, with all shares owned by the third Viscount. The company became a public limited business in 1948, with staff and members of the public taking shares. The business expanded hugely between the 1970s and 1990s, and during this time changed its name to simply WHSmith. Advertisement The last member of the Smith family left the board in 1996. Over the years, the brand has sold a variety of products including everything from vinyl records to DVDs and computer games. But it has always been best known for its wide variety of books, stationery and sweets. In more recent years, WHSmith has struggled on the high street - although its travel sales have surged. Advertisement The company confirmed in January it would sell off its high street business. Modella then snapped up WHSmith's high street stores after an auction process. Stores closing A number of WHSmith stores shut this year ahead of the rebrand. Most recently the retailer's Bedford site closed on July 5. Advertisement The store in the Frenchgate Centre in Doncaster closed on May 31, while the Stockton branch also shut on May 17. Branches in Halstead and Woolwich shut on April 12, and Halesowen and Diss followed on April 19. Just a week later, stores in Newport and Haverhill also pulled down the shutters.
North Wales Chronicle
30-06-2025
- Business
- North Wales Chronicle
WH Smith cuts sale price of high street business after weaker trading
The retailer revealed that, while the sale of the high street chain to Hobbycraft owner Modella Capital completed on Monday, the cash returns from the sale would now be lower than first expected. It said it now expects to receive gross proceeds of up to £40 million, down from the £52 million it first forecast. WH Smith said investment firm Modella had sought to renegotiate the price due to 'softer' recent trading. 'Following the agreement and announcement of the sale, the future of the high street business under a change of ownership has led to a more cautious outlook amongst stakeholders,' it said. WH Smith added that it agreed to renegotiate on the price 'given the original agreement was no longer deliverable'. Shares in WH Smith – which is now purely focused on its shops based at travel sites in the UK and worldwide – fell as much as 8% at one stage, before settling around 3% lower in midday trading on Monday. The sale to Modella agreed in March – initially valuing the high street chain at £76 million – will result in the WH Smith name disappearing from British high streets and being replaced by brand TGJones. All of the approximately 480 stores and 5,000 staff working for the high street businesses will move under Modella's ownership as part of the deal. The sale comes after years of under-pressure trading at the division, while WH Smith's travel business has grown to make up the bulk of the group's sales and profits, with more than 1,200 stores across 32 countries. WH Smith's half-year results in April showed the profits at the high street chain had slumped by a quarter to just £20 million. Buyer Modella 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.
Glasgow Times
30-06-2025
- Business
- Glasgow Times
WH Smith cuts sale price of high street business after weaker trading
The retailer revealed that, while the sale of the high street chain to Hobbycraft owner Modella Capital completed on Monday, the cash returns from the sale would now be lower than first expected. It said it now expects to receive gross proceeds of up to £40 million, down from the £52 million it first forecast. WH Smith said investment firm Modella had sought to renegotiate the price due to 'softer' recent trading. 'Following the agreement and announcement of the sale, the future of the high street business under a change of ownership has led to a more cautious outlook amongst stakeholders,' it said. WH Smith added that it agreed to renegotiate on the price 'given the original agreement was no longer deliverable'. Shares in WH Smith – which is now purely focused on its shops based at travel sites in the UK and worldwide – fell as much as 8% at one stage, before settling around 3% lower in midday trading on Monday. The sale to Modella agreed in March – initially valuing the high street chain at £76 million – will result in the WH Smith name disappearing from British high streets and being replaced by brand TGJones. All of the approximately 480 stores and 5,000 staff working for the high street businesses will move under Modella's ownership as part of the deal. The sale comes after years of under-pressure trading at the division, while WH Smith's travel business has grown to make up the bulk of the group's sales and profits, with more than 1,200 stores across 32 countries. WH Smith's half-year results in April showed the profits at the high street chain had slumped by a quarter to just £20 million. Buyer Modella 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.
Leader Live
30-06-2025
- Business
- Leader Live
WH Smith cuts sale price of high street business after weaker trading
The retailer revealed that, while the sale of the high street chain to Hobbycraft owner Modella Capital completed on Monday, the cash returns from the sale would now be lower than first expected. It said it now expects to receive gross proceeds of up to £40 million, down from the £52 million it first forecast. WH Smith said investment firm Modella had sought to renegotiate the price due to 'softer' recent trading. 'Following the agreement and announcement of the sale, the future of the high street business under a change of ownership has led to a more cautious outlook amongst stakeholders,' it said. WH Smith added that it agreed to renegotiate on the price 'given the original agreement was no longer deliverable'. Shares in WH Smith – which is now purely focused on its shops based at travel sites in the UK and worldwide – fell as much as 8% at one stage, before settling around 3% lower in midday trading on Monday. The sale to Modella agreed in March – initially valuing the high street chain at £76 million – will result in the WH Smith name disappearing from British high streets and being replaced by brand TGJones. All of the approximately 480 stores and 5,000 staff working for the high street businesses will move under Modella's ownership as part of the deal. The sale comes after years of under-pressure trading at the division, while WH Smith's travel business has grown to make up the bulk of the group's sales and profits, with more than 1,200 stores across 32 countries. WH Smith's half-year results in April showed the profits at the high street chain had slumped by a quarter to just £20 million. Buyer Modella 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.
