Latest news with #SeanToal
Yahoo
05-07-2025
- Business
- Yahoo
The battle to save a high street giant from Woolworths' fate
The new owners of WH Smith's high street shops have vowed to arrest decades of decline after swooping on the business in a cut-price deal. Trading under the fictitious new name TG Jones, hundreds of stores are poised to be revamped with postal and banking services as part of a bold attempt to emulate Boots and become 'a vanguard retailer' that is part of the 'lifeblood' of communities. The changes are at the centre of a comprehensive restructuring plan put together by the investment firm Modella Capital, which completed a takeover of WH Smith's estate of 464 shops on Monday. The deal excludes branches in train stations and airports, which will continue to operate under the WH Smith name. Modella's buyout followed months of intense negotiations, including a last-minute reduction to the price tag after a deterioration in trading. The shops will continue to be run by Sean Toal, the managing director of WH Smith's high street arm since 2019. The introduction of vital services alongside everyday products is 'really important', if the shops want to become more relevant and the business is to avoid the same fate as other high profile retailers that fell out of favour, said Steve Curtis, Modella's chairman. 'We think there's a really exciting story here for a business that could have been Woolworths Two…There's no reason why, with the proper love and care and a bit of support, it should ever close. It should be in rude health,' Curtis added. Woolworths was a familiar presence on British high streets for more than 90 years until its collapse in 2008. Toal said: 'The high street is crying out for more services. There is a sense that the average high street is sort of being hollowed out. And a lot of the stuff that really makes a high street is just kind of fast disappearing.' Curtis added that the Post Office already has counters in nearly 200 branches, but the ambition was to have one 'of some size in every single one of our stores'. Modella points to the way Boots has managed to remain an enduring feature of town centres by providing prescriptions, vaccinations and advice for minor health ailments. Shops will be further rejuvenated through tie-ups with Hornby, the toymaker behind brands such as Airfix and Scalextric, as well as fantasy games sensation Warhammer. There are also plans for a fresh push into music after WH Smith reintroduced vinyl last year following a 30-year hiatus. Pick-and-mix – once a staple of Woolworths' shops – could make a comeback too. Curtis likened its ambitious plans to pointing a 'great old tanker' 'in a slightly different direction'. The changes will 'take a period of time' but 'by the time you get to the end of it, it's going to look quite different – it'll be a different vibe'. WH Smith has faced enduring ridicule for allowing its stores to become tired and rundown. Eventually, the neglect became the inspiration for a Twitter account called @WHS_Carpet, which dedicated its time to naming and shaming the shabbiest premises. When its plans to exit the high street were unveiled in March, industry figures expressed fears that as many as half its shops would be quickly jettisoned – but the opposite is true, Modella promises. A longstanding policy of shrinking the estate by shutting the worst-performing stores will be paused. Some are now in line for a much-needed facelift. Modella, which also owns Hobbycraft and the Original Factory Store, will pay £40m to take control, down from the £52m that was agreed when the deal was first unveiled, for a business that made £15m of operating profit in the preceding six months. Its revival rests on an ambitious cost-cutting plan in which landlords are persuaded to sign up to more affordable rents, and suppliers agree to more favourable terms. Money saved will then be reinvested in the turnaround. 'We're going to need help from a group of stakeholders to help us rebuild this grand old institution into something that it deserves to be,' Curtis said. With the WH Smith name still appearing on hundreds of shops at airports, train stations and hospitals, Modella was forced to come up with a new brand for the shops, which have operated under the same name since the first WH Smith shop opened in Mayfair, central London, in 1792, when George III was on the throne. The 'TG Jones' name was invented by Modella directors. Marketing experts have cast doubt on the rebranding exercise, while the reaction of shoppers suggests it will be a battle to convince some that the business still has a future after its relaunch. A goodbye video posted on WH Smith's official Instagram account prompted a flurry of negative responses: 'Yeah, you've just killed the whole business mate. Nobody is going to TG Jones,' one reportedly said. 'Who the hell is TG Jones?' asked another, while a third described the redesign as 'horrific'. In a letter to staff, Modella said: 'As a very well-known surname in the UK, Jones feels like a worthy successor to Smith and carries the same sense of family.' With a logo made up of the same blue and white colours that have long been a feature of the WH Smith branding, customers will soon be won over, Curtis predicted. 'If you're in a town, you've lived there all your life, and you've walked down that street all your life, and the cover facia is still exactly the same white, exactly the same blue, you probably won't notice it,' he said. The signage on the stores will be changed to 'TG Jones' over the coming weeks and negotiations with landlords will begin in earnest, with Modella hoping to persuade them to grant more affordable rents. Shop owners will be coaxed with the offer of longer leases than they've become accustomed to under WH Smith. Around 350 stores are on leases of less than two years but Modella believes that by signing up to longer contracts – perhaps 10 years – landlords may agree to an initial period that is rent-free, which would release cash to re-invest in refurbishments. 'If we go to that landlord and say ... 'We'll use all that cash and we'll make that shop look really beautiful'… what that's doing is improving the asset. It also gives us a long-term partnership. So it's investing together,' Curtis said. 'Vacancies on UK high streets are running around about 14pc ... There's a lot of vacant units, so if they [landlords] can work with a partner that's prepared to put a long-term commitment down ... For some of these landlords these are pension funds for their families ... it creates security,' Toal said. There are even plans for several new store openings. 'We're not in Manchester city centre ... We should be ... and we're under-represented as a retailer in London,' Toal said. The last time WH Smith opened a store on a UK high street was decades ago. 'We want to send a message to the market ... We want to open stores where it's viable to do so,' Curtis said. Modella is betting that suppliers will be similarly receptive. 'I think suppliers thought this business hasn't got a future. They now think, 'boy, has it got a future' ... which is brilliant for them, because rather than supplying 100 stores in three years' time, they're hopefully going to be supplying 500 – that's massive for them,' Curtis said. This optimism isn't necessarily shared everywhere. Some retail figures believe the business has a slim chance of survival. Meanwhile, the Communication Workers Union has expressed fears that Modella could even be 'looking to asset-strip it'. Such suggestions are rejected. 'It generates cash. It's got a solid level of profitability ... There's much more value for us here in growing something that makes X today, and Y tomorrow ... If we are on the up in 10 years' time, there's no reason why we couldn't float this business, because it could be worth a lot of money,' Curtis said. 'We could easily just say that they should quietly close this over the next couple of years but you don't need to ... and we don't want the high streets of this great nation of ours to be proliferated with charity shops, vape shops and coffee shops,' he added. 'We're in a lot of locations. If we're not there, then who else is going to come in?' Toal said. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
05-07-2025
- Business
- Telegraph
The battle to save a high street giant from Woolworths' fate
The new owners of WH Smith's high street shops have vowed to arrest decades of decline after swooping on the business in a cut-price deal. Trading under the fictitious new name TG Jones, hundreds of stores are poised to be revamped with postal and banking services as part of a bold attempt to emulate Boots and become 'a vanguard retailer' that is part of the 'lifeblood' of communities. The changes are at the centre of a comprehensive restructuring plan put together by the investment firm Modella Capital, which completed a takeover of WH Smith's estate of 464 shops on Monday. The deal excludes branches in train stations and airports, which will continue to operate under the WH Smith name. Modella's buyout followed months of intense negotiations, including a last-minute reduction to the price tag after a deterioration in trading. The shops will continue to be run by Sean Toal, the managing director of WH Smith's high street arm since 2019. The introduction of vital services alongside everyday products is 'really important', if the shops want to become more relevant and the business is to avoid the same fate as other high profile retailers that fell out of favour, said Steve Curtis, Modella's chairman. 'We think there's a really exciting story here for a business that could have been Woolworths Two…There's no reason why, with the proper love and care and a bit of support, it should ever close. It should be in rude health,' Curtis added. Woolworths was a familiar presence on British high streets for more than 90 years until its collapse in 2008. Toal said: 'The high street is crying out for more services. There is a sense that the average high street is sort of being hollowed out. And a lot of the stuff that really makes a high street is just kind of fast disappearing.' Curtis added that the Post Office already has counters in nearly 200 branches, but the ambition was to have one 'of some size in every single one of our stores'. Modella points to the way Boots has managed to remain an enduring feature of town centres by providing prescriptions, vaccinations and advice for minor health ailments. Shops will be further rejuvenated through tie-ups with Hornby, the toymaker behind brands such as Airfix and Scalextric, as well as fantasy games sensation Warhammer. There are also plans for a fresh push into music after WH Smith reintroduced vinyl last year following a 30-year hiatus. Pick-and-mix – once a staple of Woolworths' shops – could make a comeback too. Curtis likened its ambitious plans to pointing a 'great old tanker' 'in a slightly different direction'. The changes will 'take a period of time' but 'by the time you get to the end of it, it's going to look quite different – it'll be a different vibe'. 'Grand old institution' WH Smith has faced enduring ridicule for allowing its stores to become tired and rundown. Eventually, the neglect became the inspiration for a Twitter account called @WHS_Carpet, which dedicated its time to naming and shaming the shabbiest premises. she's a beaut — carpet (@WHS_Carpet) June 19, 2025 When its plans to exit the high street were unveiled in March, industry figures expressed fears that as many as half its shops would be quickly jettisoned – but the opposite is true, Modella promises. A longstanding policy of shrinking the estate by shutting the worst-performing stores will be paused. Some are now in line for a much-needed facelift. Modella, which also owns Hobbycraft and the Original Factory Store, will pay £40m to take control, down from the £52m that was agreed when the deal was first unveiled, for a business that made £15m of operating profit in the preceding six months. Its revival rests on an ambitious cost-cutting plan in which landlords are persuaded to sign up to more affordable rents, and suppliers agree to more favourable terms. Money saved will then be reinvested in the turnaround. 'We're going to need help from a group of stakeholders to help us rebuild this grand old institution into something that it deserves to be,' Curtis said. 'Who the hell is TG Jones?' With the WH Smith name still appearing on hundreds of shops at airports, train stations and hospitals, Modella was forced to come up with a new brand for the shops, which have operated under the same name since the first WH Smith shop opened in Mayfair, central London, in 1792, when George III was on the throne. The 'TG Jones' name was invented by Modella directors. Marketing experts have cast doubt on the rebranding exercise, while the reaction of shoppers suggests it will be a battle to convince some that the business still has a future after its relaunch. A goodbye video posted on WH Smith's official Instagram account prompted a flurry of negative responses: 'Yeah, you've just killed the whole business mate. Nobody is going to TG Jones,' one reportedly said. 'Who the hell is TG Jones?' asked another, while a third described the redesign as 'horrific'. In a letter to staff, Modella said: 'As a very well-known surname in the UK, Jones feels like a worthy successor to Smith and carries the same sense of family.' With a logo made up of the same blue and white colours that have long been a feature of the WH Smith branding, customers will soon be won over, Curtis predicted. 'If you're in a town, you've lived there all your life, and you've walked down that street all your life, and the cover facia is still exactly the same white, exactly the same blue, you probably won't notice it,' he said. The signage on the stores will be changed to 'TG Jones' over the coming weeks and negotiations with landlords will begin in earnest, with Modella hoping to persuade them to grant more affordable rents. Shop owners will be coaxed with the offer of longer leases than they've become accustomed to under WH Smith. Building a future Around 350 stores are on leases of less than two years but Modella believes that by signing up to longer contracts – perhaps 10 years – landlords may agree to an initial period that is rent-free, which would release cash to re-invest in refurbishments. 'If we go to that landlord and say ... 'We'll use all that cash and we'll make that shop look really beautiful'… what that's doing is improving the asset. It also gives us a long-term partnership. So it's investing together,' Curtis said. 'Vacancies on UK high streets are running around about 14pc ... There's a lot of vacant units, so if they [landlords] can work with a partner that's prepared to put a long-term commitment down ... For some of these landlords these are pension funds for their families ... it creates security,' Toal said. There are even plans for several new store openings. 'We're not in Manchester city centre ... We should be ... and we're under-represented as a retailer in London,' Toal said. The last time WH Smith opened a store on a UK high street was decades ago. 'We want to send a message to the market ... We want to open stores where it's viable to do so,' Curtis said. Modella is betting that suppliers will be similarly receptive. 'I think suppliers thought this business hasn't got a future. They now think, 'boy, has it got a future' ... which is brilliant for them, because rather than supplying 100 stores in three years' time, they're hopefully going to be supplying 500 – that's massive for them,' Curtis said. This optimism isn't necessarily shared everywhere. Some retail figures believe the business has a slim chance of survival. Meanwhile, the Communication Workers Union has expressed fears that Modella could even be 'looking to asset-strip it'. Such suggestions are rejected. 'It generates cash. It's got a solid level of profitability ... There's much more value for us here in growing something that makes X today, and Y tomorrow ... If we are on the up in 10 years' time, there's no reason why we couldn't float this business, because it could be worth a lot of money,' Curtis said. 'We could easily just say that they should quietly close this over the next couple of years but you don't need to ... and we don't want the high streets of this great nation of ours to be proliferated with charity shops, vape shops and coffee shops,' he added. 'We're in a lot of locations. If we're not there, then who else is going to come in?' Toal said.
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.
