Buyer of WH Smith Faces Potential 12-Month Ban Due to Mass Store Closures
Unleashing the New Faces of High Street Stores: A Fresh Look for WH Smith and More!
Here's the scoop on the shake-up happening in the retail world, centered around WH Smith's high street chain. The new owners, Modella Capital, are stepping in with a significant plan to reinvent the 480-store empire. The catch? A 12-month moratorium on mass store closures due to the terms of the Transitional Services Agreement (TSA) between WH Smith and Modella.
Our sources claim that WH Smith has the power to terminate support if Modella launches a Company Voluntary Arrangement (CVA) within the first year, a clause crucial to retail insiders. Modella is set to rebrand the chain under the name TG Jones.
Recently, Modella's plans for aggressive restructuring at other assets like Hobbycraft (planning store closures and rent renegotiations via CVA) and The Original Factory Shop have raised eyebrows in industry circles. Experts predict that, over time, a sizable part of the WH Smith high street estate could be at risk.
As Modella stresses the viability of bricks-and-mortar retailing, it has a history of CVAs to address underperforming stores. Spokespeople for Modella maintain that WH Smith's high street business remains solvent, with no CVA on the agenda, instead focusing on exciting plans for TG Jones.
With this move, WH Smith, now a pure-play travel retailer, sets its sights on international growth. In the coming weeks, keep an eye out for updates on TG Jones, Hobbycraft, and The Original Factory Shop. Stay tuned for more retail revelations!
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- Modella Capital, the new owners of WH Smith's high street chain, have agreed to a 12-month moratorium on massive store closures due to the terms of the Transitional Services Agreement (TSA).
- Despite the moratorium, industry experts predict that a significant part of the WH Smith high street estate could be at risk in the future, following Modella's aggressive restructuring strategies seen in other assets such as Hobbycraft and The Original Factory Shop.
- Modella plans to rebrand WH Smith's 480-store empire as TG Jones and focuses on the chain's solvency, denying any plans for a Company Voluntary Arrangement (CVA) at this time.
- With WH Smith's high street business transitioning under the TG Jones name, the company is aiming for international growth, leaving behind its retail presence on the British high street.
