After more than 230 years on the British high street, WHSmith has agreed a £76 million deal to sell its stores to Modella Capital, who also own Hobbycraft.
WHSmith is to be rebranded under the TGJones banner (stock image) (Image: Getty Images)
Iconic British retailer WHSmith has left customers in bewilderment as it declared a name change after over two centuries of trading.
In an unexpected turn, the popular high street chain will transform its identity following a £76 million buyout by Modella Capital, the owners of Hobbycraft. The agreement, announced on Friday (March 28), signifies the end of an era for WHSmith – the brand established by Henry Walton Smith and his wife, Anna, in 1792.
The change will see a new chapter begin, under the moniker TGJones. With approximately 480 shops sprawled across the UK, WH Smith is a cornerstone employer for around 5,000 staff.
Although changes to the primary storefronts are on the horiz on, the familiar WHSmith presence within airports and train stations will remain intact.
The announcement instigated a wave of nostalgia and shock among shoppers, who took to social media to voice their dismay. A notably disappointed X
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Echoing the sentiment, another added: “Once one of my favourite shops – definitely part of my childhood – so feeling even older than usual. But why the daft name change?”
Capturing the mood of disbelief, a third commenter posted: “Sad to read the news today that WHSmith will disappear from our high streets after an agreed sale… end of an era. I have many found memories of buying my Jam singles from the record department in Southsea on Saturdays in the 80s.”
A fourth disgruntled shopper lamented: “WHSmith. What a sad day. The management has been running it down for years. From being a pleasant place to be in it became a self-service, pile it high and sell it cheap drab environment. What a sad day.”
Meanwhile, another outraged X user hit out: “Utter madness to use a fake and made up name – TGJones. How much did a marketing company charge for this insane advice? The name ‘TGJones’ was selected by Modella Capital to evoke a familiar, family-oriented feel maintaining the sense of a family business. WHSmith. Really.”
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Confirming the strategic shift, WH Smith stated: “All stores, colleagues, assets and liabilities of the High Street business will move under Modella Capital’s ownership as part of the Transaction. Under this new ownership, the business will be led by Sean Toal, currently CEO of the High Street business. The High Street business will operate for a short transitional period under the WHSmith brand whilst the business rebrands as TGJones.”
Carl Cowling, Chief Executive Officer of WHSmith, explained: “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.
“We have a highly successful travel business, operating in fast growing markets in 32 countries and we are constantly innovating to deliver strong returns and meet our customers’ and partners’ needs.
“Our travel business currently accounts for around 75% of the group’s revenue and 85% of its trading profit. With the ongoing strength in our UK travel division, and the scale of the growth opportunities in both North America and the rest of the world, we are in our strongest ever position to deliver enhanced growth as we move forward as a pure play travel retailer.”
Stores within airports and railway stations will remain under the WHSmith name (stock image) (Image: Getty)
Mr Cowling continued: “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. As we look forward as a simplified, travel-focused group, I am excited about the Group’s future prospects. With a clear strategy, a strong balance sheet, and operations in high growth and attractive markets, we are well-positioned to generate substantial growth and value for all stakeholders.”
