WH Smith, one of the UK’s oldest and most recognisable retail brands, is set to vanish from the high street after 233 years following the sale of its high street division to Modella Capital for £76 million. The historic books and stationery chain, established in 1792, has sold its entire portfolio of 480 UK high street stores — along with 5,000 staff and associated assets — to Modella, the owner of Hobbycraft and The Original Factory Shop. The shops will be rebranded as TG Jones, marking the end of the WH Smith name on Britain’s high streets.
The WH Smith brand itself was not part of the sale and will continue to exist globally through the group’s fast-growing travel division, which operates retail stores in airports, train stations, and hospitals across 32 countries. Carl Cowling, group chief executive, said the move reflects the company’s shift in focus. “As our travel business has grown, our UK high street business has become a much smaller part of the WH Smith Group,” he said. “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 WH Smith leadership team to focus exclusively on our travel business.”
WH Smith opened its first store in Little Grosvenor Street, Mayfair in 1792, founded by Henry Walton Smith and his wife Anna. The company pioneered travel retail in the UK, opening its first railway station store at London Euston in 1848. In recent years, the business has become increasingly reliant on its travel division, which accounted for 75 per cent of group revenue and 85 per cent of trading profit in the last financial year. The deal signals the end of an era on British high streets, where WH Smith has long been a familiar presence in towns and cities across the country.
Under Modella Capital, the stores are expected to retain their core retail offering, but with a new identity and operational direction under the TG Jones brand. The new owner has stated that it will keep the Post Office outlets that operate in many branches, ensuring continuity for customers. Modella Capital, which has previously invested in Paperchase and Hobbycraft, expressed confidence in the high street’s future and outlined plans to introduce new product ranges and services in the near future, working closely with the existing management team to drive the business forward.
“We are delighted to welcome the WH Smith high street business into our portfolio,” a Modella spokesperson said. “With a rich heritage and prime locations across the UK, we see great potential in evolving the TG Jones brand to meet the changing needs of consumers while staying true to its community roots.” The spokesperson added, “TG Jones feels like a worthy successor to the WH Smith brand. Jones carries the same sense of family and reflects these stores being at the heart of everyone’s high street.”
Despite the optimism from Modella, retail analysts have raised concerns about the future of the stores. They expect the private equity firm to closely evaluate the performance of the stores it has acquired. Nicholas Found at the consultancy, Retail Economics, noted that WH Smith's travel arm had become its "engine room," contributing significantly to the group's revenue and profit. “Its product mix, which includes food, beverages and tech, is better suited to higher-margin, impulse-driven purchases in busy transit hubs,” he added.
In a statement, WH Smith’s group chief executive Carl Cowling described the sale as “a pivotal moment” for the company, which would now focus exclusively on the travel-related side of the business. “High Street is a good business; it is profitable and cash generative with an experienced and high-performing management team,” he reiterated. “However, given our rapid international growth, now is the right time for a new owner to take the High Street business forward.”
As part of the transition, the stores will continue to operate under their current name for a short period while they undergo rebranding to TG Jones. The new branding will take time to resonate with the British public, and many will mourn the loss of a high street brand that has been a hub for shoppers for more than two centuries.
WH Smith has been a staple of UK town centres since the Victorian era, appealing to a broad range of customers over the decades. From stocking up on school supplies to browsing for birthday cards or magazines, WH Smith has been a go-to destination for many. However, in recent years, the chain has faced stiff competition from budget high street shops, supermarkets, and online retailers, which have eroded its market share.
Trading under its more recent blue and white logo, WH Smith developed a reputation for being run-down and shabby, culminating in a popular social media account that mocked the poor state of its floor coverings. With this backdrop, the sale to Modella Capital comes as WH Smith looks to redefine its focus and strategy.
Modella Capital was established in 2022 and is based in London, specializing in retail investments. The firm has previously backed chains such as Paperchase and Tie Rack, and its acquisition of WH Smith’s high street stores marks a significant expansion for the company. The announcement of the sale has sparked a mix of nostalgia and curiosity about the future of the TG Jones brand and the potential changes it will bring to the high street.
As WH Smith transitions to a pureplay global travel retailer, the future of its high street stores remains uncertain. While Modella Capital has plans to revitalize the chain, it will be essential to see how the rebranding and new strategies unfold in the coming months.
