Latest news with #ModellaCapital
Forbes
31-07-2025
- Business
- Forbes
WHSmith Puts Retail Eggs In One Basket With Sale Of Greetings Card Unit
British retailer WHSmith will become a pure-play travel retailer following the sale of its online personalized greeting cards business, The £24 million ($31.8 million) divestment to Card Factory—a listed gift and card business with more than 1,000 stores in the U.K. and Ireland—is expected to be completed by the end of the year. WHSmith's move towards the airport and travel channel has been in the works for some years, but was crystallized in March 2025 when the company announced the sale of its entire U.K. High Street business to Modella Capital. The deal, covering almost 500 stores, went through at a significant discount to the original asking price, with WHSmith expecting gross cash proceeds of up to £40 million ($53 million) by next year. At the time of the announcement, investors took flight with the stock dropping below $10 for the first time in more than a decade, followed by a recovery. The sale notice on Tuesday led to another decline, taking the stock to £10.28 by today's close. Year-to-date, the stock is down by 13.5%. It was a very different story for Card Factory, whose stock has soared by 10% since Tuesday's opening. The acquisition looks like a good one: over the prior two financial years, Funky Pigeon averaged £32 million in revenue per annum, generating £5 million EBITDA. This is a respectable margin for an online retail business and is likely to provide strong returns for shareholders. The deal also accelerates Card Factory's existing digital strategy by providing a new platform for online growth. By combining its existing omnichannel offer with Funky Pigeon's, the company can leverage its 24 million unique store customers and become a bigger presence in the U.K. online card/gift retailer, where Moonpig, listed in London since 2021, is dominant, and Hallmark UK and Thortful are also major players. Card Factory's CEO, Darcy Willson-Rymer, said that a unified technology platform—based on Funky Pigeon's existing one—'will provide the data needed to develop deeper insights into the customer journey.' WHSmith gambles on a pure-play strategy Meanwhile, WHSmith, which owns InMotion, still needs to convince investors that its pure-play global travel retailer strategy can be a winner. Having ditched its U.K. High Street business—which was profitable and cash generative—it must show that the travel retail channel has solid prospects. In the financial year ended 31 August 2024, 75% of the group's revenue and 85% of its trading profit came from its travel business, while the U.K. domestic unit had become an increasingly smaller part of the group. Over the past decade, WHSmith has become a key global travel retailer with over 1,200 stores across 32 countries, but it is not yet among the biggest 10 players when looking at the entire duty-free and travel retail channel. The company has successfully developed its 'travel essentials' proposition, including a higher proportion of food and drink, and health and beauty. The company has also won new and/or expanded contracts at London Heathrow and at New York's John F. Kennedy Airport. Currently operating two stores in Terminal 5, WHSmith will open a further eight in the New Terminal One when it is inaugurated in 2026. This will include the first WHSmith-branded store at the hub, along with some bespoke concepts such as The Queens Borough Market and The Canopy. The North America division has been expanding at major U.S. East Coast airports, operating over 50 stores in gateways such as Newark and La Guardia serving New York, and Ronald Reagan and Dulles International airports in Washington. In total, the division has more than 300 stores across North America, the world's largest travel market by far. North American focus WHSmith CEO Carl Cowling has said that 'North America is our most exciting opportunity for growth,' so expect the company to compete aggressively for new concessions as they come up. However, WHSmith faces strong competition from more powerful airport retailers such as Avolta and Lagardère Travel Retail, which are actively pursuing the travel-essentials segment, the latter in particular. They have both developed hybrid retail to stand out, while Gebr. Heinemann has also been testing out related concepts at smaller airports. WHSmith believes its concepts are strong enough to hold their own. Now that its management is unencumbered by other businesses, it says it is 'well positioned to capture the substantial global growth opportunities' in key travel markets, not least because air passenger numbers are forecast to more than double between 2024 and 2050.
Yahoo
18-07-2025
- Business
- Yahoo
STB CF finances Modella's purchase of WH Smith's UK high street business
Secure Trust Bank Commercial Finance (STB CF) has extended a £50m asset-based lending facility for Modella Capital's acquisition of WH Smith's UK High Street operations. The funds will support the business's working capital needs as it embarks on a new strategic phase under Modella Capital, which includes rebranding its 464 high street stores as 'TG Jones'. Founded in 1792, WH Smith will continue operating its travel shops in railway stations, airports, and hospitals, as well as its international businesses, under its existing brand. The newly branded TG Jones high street operation aims to refine its retail offering, improve efficiency, and seek growth opportunities with support from Modella Capital and its financial partners. This deal reflects increased retail merger and acquisition activity for STB CF, which previously aided Modella Capital in acquiring Hobbycraft. In January 2024, the bank also provided financing to Ann Summers for its online growth. STB CF's focus on private equity partnerships is evident, with ten deals completed across eight sponsors last year, compared to six the year before. STB CF regional sales director Tony Young said: 'Having worked with Modella Capital previously, we're proud to once again support the team on this high-profile transaction. 'This deal demonstrates the strength of asset-based lending in enabling strategic private equity acquisitions and providing ongoing operational support, and it's great to continue adding to our portfolio of retail deals. 'We look forward to continuing our partnership with Modella Capital and the management team as they continue to drive the business forward under the TG Jones brand.' "STB CF finances Modella's purchase of WH Smith's UK high street business" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Sun
16-07-2025
- Business
- The Sun
Major bargain retailer launches 50% off Christmas sale in July after shutting nine UK stores in just a week
A MAJOR bargain retailer has launched a rather early Christmas decoration sale after closing nine UK stores in just a week. A branch of the discount store, is offering a 50 per cent off sale - including festive items - as it prepares to shut its doors for good. The Original Factory Shop, which has 178 shops, has announced the upcoming closure its branch in Caldicot. It is the latest in a string of closures, with a further eight stores having shuttered down on June 28. But while Caldicot residents have been left bitterly disappointed by the news, the store is going out with a major sale. Any shoppers looking to stock up on Christmas gifts and decorations early are in luck, as the closing down sale includes the shop's festive stock. A spokesperson for the chain said on Facebook: "Caldicot Store Closing Down Sale. "We have UP TO 50% off items including Christmas stock! " Open 9am until 5.30pm Monday to Saturday and 10am until 4pm Sundays." But commenters on Facebook were distraught that the branch would closing. One user said: "Oh no, I'm gutted, I come over from Weston-Super-Mare to house sit and I absolutely love this shop so many bargains. Very sad!" Aldi's backyard essential is flying off shelves for only $29.99 and instantly gets your home ready for summer "A loss for Caldicot with another shop closing down," another commented. A third said: "Village of my birth so sad to witness such change." It comes after TOFS was bought by Modella Capital back in February. It has since launched a restructuring effort to renegotiate rents at 88 of the retail chain's stores. Last month, a spokesperson for The Original Factory Shop said: "Closing stores is always a tough decision and we are committed to keeping as many stores open as possible. "This is, however, dependent on successful negotiations with landlords as we strive to build a sustainable and successful business for the future." The Original Factory Shop was contacted for further comment. The Original Factory Shop closures Milford Haven, Pembrokeshire - June 26 Perth - June 28 Chester Le Street, County Durham - June 28 Arbroath, Angus - June 28 Kidwelly, Carmarthenshire - June 28 Pershore, Worcestershire - June 28 Normanton, West Yorkshire - June 28 Peterhead, Aberdeenshire - June 28 Shaftesbury, Dorset - June 28 Staveley, Cumbria - July 12 Bridlington - July 20 Caernarfon - July 20 Cupar, Fife - July 27 Kirkham, Lancashire - August Middlewich, Cheshire - TBC Blairgowrie, Scotland - TBC Ashbourne - TBC Heswall - TBC Caldicot, Wales - TBC 2
Daily Mail
09-07-2025
- Business
- Daily Mail
WH Smith's high street rebrand begins and its new name has people asking questions
The new private equity owners of WH Smith's high street stores have already started their rebranding efforts, to the dismay of some shoppers. Hobbycraft owner Modella Capital snapped up WH Smith high street shops last month, for less than the £76million initially agreed. Following the deal, the name WH Smith is disappearing from the high street, marking the end of an era for a business that began in 1792. Modella is erasing WH Smith and replacing it with TGJones branded stores and products. While the sale only applied to its high street presence and excluded the group's travel business, the TGJones rebrand has already hit the WH Smith website. The website now redirects to and WH Smith can now be found online at Shoppers pondering whether TGJones is a real person, perhaps with solid connections to news, books or stationery, will be disappointed. The private equity firm previously 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'. By contrast, WH Smith gets its name from founder Henry Walton Smith, who was a news vendor in London in the eighteenth century alongside his wife Anna. While it is still early days for the TGJones rebranding, some shoppers are unimpressed by the changes. One poster on X, formerly Twitter, said: 'I'll never buy anything from TG Jones'. Another X poster shopping in Newbury, said: 'Planning has gone in for the new TGJones sign in Newbury, if that's what the actual logo looks like that awful! Reminds me of the awful WHS rebrand they tried.' Whilst the reasoning behind changing well known brand name of WH Smith to TG Jones may make sense at board level, it feels reminiscent to us of WPP replacing great agency names with VML. — Stan/Lee (@StanLeeTweets) July 2, 2025 A similarly unimpressed poster on X, said: 'Whilst the reasoning behind changing well known brand name of WH Smith to TGJones may make sense at board level, it feels reminiscent to us of WPP replacing great agency names with VML.' While displaying a video with the caption 'This is sick', a further poster on X said of the name change: 'The name "TGJones" is not an individual's name, but a fabricated name meant to evoke a sense of familiarity and a family-oriented business, similar to the original.' Some shoppers incorrectly speculated that the rebranded name referred to Thomas George 'TG' Jones, who played football for Everton and Wales in the 1930s and 1940s, and died in 2004. Modella has maintained WH Smith's signature blue and white theme on high street shop-fronts. 'Clearly the plan in the first instance is to emphasise continuity, but, there is an argument where maybe it would have worked better for the brand to look completely different', retail consultant Graham Soult told Retail Gazette. Modella has said it will keep the Post Office outlets that operate in many branches. WH Smith is the latest in a string of once-ubiquitous names to disappear from high streets, including BHS, Debenhams, Littlewoods, Topshop and Woolworths, and many rebrandings have a patchy history of working out. Ill-fated brand name changes include the Post Office's attempt to name itself Consignia and finance firm Aberdeen's decision to rename itself Abrdn. Aberdeen has since reversed this decision. What do we know about Modella Capital? London-based private equity firm Modella has links to private equity house R Capital and is chaired by Steve Curtis, who has 40 years of retail sector experience and is connected to the rescue efforts and subsequent sales of Ted Baker, Paperchase and Jigsaw. Modella has taken over 480 WH Smith shops in retail parks, shopping centres and on high streets, including 5,000 staff. However, the deal did not include WH Smith's travel locations, such as shops in airports and train stations, which will stay as WH Smith. The deal also did not include the sale of the WH Smith brand. Modella prefers to stay low key, but is evidently on an acquisitional spree. The WH Smith deal marked its largest acquisition to date and its fourth retail acquisition in eight months. The private equity firm acquired 120-strong out-of-town operator Hobbycraft in August 2024, before acquiring the 180-store value operator The Original Factory Shop in February this year. Having secured WH Smith high street shops, they have reportedly turning their attention to the kitchenware chain Lakeland as their next takeover target.
Scottish Sun
05-07-2025
- Business
- Scottish Sun
Huge high street chain to shut UK store TODAY after announcing 20 shop closures after sale
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A HUGE high street retailer is set to shut one of its locations for good today. The store will shut up shop as the company rebrands its sites across the country. 2 The retailer will rebrand under new ownership Credit: Google Maps 2 WHSmith has been a high street staple for more than 200 years WHSmith has shut 20 stores this year already with its location on Midland Road, Bedford, set to follow suit today, July 5. It comes after the firm was bought out by Hobbycraft owner Modella Capital in March. The firm has not yet confirmed how many jobs will be affected by the closure. As part of the takeover deal all 464 WHSmith stores are rebranding to TGJones. WHSmith has been a staple of the British high street for some 200 years but came on hard times in recent years. The Modella Capital takeover has now been completed with the WHSmith website rebranded. There are over 1,100 WHSmith stores in the UK which will be either closed down or rebranded under the new ownership. Plans to open more than 100 new stores in airports, railways and hospitals are underway, these stores will not rebrand and remain as WHSmith. A WHSmith spokesperson said: 'We can confirm that the WHSmith store in Bedford will be closing in July. "It is no longer sustainable to continue to trade from this location and the decision has been taken to close the store as a result of the forthcoming lease expiry. McDonald's Menu Shake-Up, WHSmith High Street Exit, and Smart Meter Heating Warning – Money News Today "We are disappointed to be losing our presence in Bedford and we would like to thank all our customers for their support and for shopping with us. "We are also extremely grateful for the commitment of our in store colleagues who we will support with this transition and redeploy to nearby stores, where possible.' Modella have now put in planning applications with a number of local councils to change the signs on WHSmith stores. WHSmith customers have also started to receive emails from TGJones, leading to some confusion. Several stores that are closing are understood to be holding closing down sales. The end of WHSmith on the high street The closures mark the beginning of the end of a 233-year stint on the high street for WHSmith. Earlier this year, it put its entire high street estate up for sale as it focuses instead on its more profitable travel arm. Its remaining 480 high street stores were snapped up by Hobbycraft owner Modella Capital last month as part of a £76million deal. The move saved the jobs of roughly 5,000 employees. However, the famous WHSmith name is set to be lost to the high street as the shops will be gradually rebranded to TGJones. WHSmith stores will remain in airports, train stations and hospitals, and the retailer is planning to expand here. The brand opened its first shop in 1792 in Little Grosvenor Street, London, later becoming the UK's main newspaper distributor.
