Updated High Street History: WH Smith's Big Move, Restructuring Plans for TG Jones
Potential purchaser of WH Smith faces potential 12-month restrictions on extensive store shutdowns
Step aside, traditional high street giants, 'cause the game is changin'. The infamous WH Smith, a name that's echoed through 233 years of high street history, has sold off its retail shops to Modella Capital for a cool £76m. But don't go dusting off those nostalgic memories just yet—this sale isn't the endgame, it's just the beginning. What's in store? Your friendly neighborhood business, WH Smith, is about to transform into a travel retailer, leaving its high street roots behind—renamed TG Jones, that is.
Now, here's where things get intriguing. Modella's been dabbling in some heavy restructuring over at Hobbycraft and The Original Factory Shop. And if the industry's thinking is anything to go by, there's a chance that TG Jones might follow suit in the post-12-month restriction period. But hold up, before you start rummaging through your old WH Smith receipts for a sentimental souvenir, let's lay out the cards on the table: Modella's restructuring plans don't have a CVA (Company Voluntary Arrangement) on the table for TG Jones right now. The business is solvent, they say, with no intention of offloading stores en masse.
But even if Modella's not gearing up for a mass closure spree, that doesn't mean they can't tweak things around. The transitional services agreement, a sort of keep-the-lights-on pact between Modella and WH Smith, prohibits TG Jones from launching a CVA for mass closures in the first year. Violate this rule, and WH Smith might pull the plug on their support systems. A harsh lesson in consequences, sure, but that's business for you.
Oh, and if you're wondering about the timing of all this? The deal ought to finalize by March 2025, leaving TG Jones with a 12-month grace period. After that? The future's not set in stone, but industry analysts are dropping hints that restructuring could be back on the table. So, it's time to keep a watchful eye on the high street horizon.
In the meantime, if you need a quick break from all the business chatter, take a gander at our other financial tidbits. We've got the scoop on the merger between Hovis and Kingsmill-owners, a fresh dose of trouble brewing for Aston Martin, and even some brain-health advice from a real-life brain surgeon. So, there's plenty to unpack here—we'll leave the mental gymnastics up to you!
Stay tuned for updates, and remember: the world of business is always gotta keep movin' forward.
Oh, and for the record? We're not gonna be the ones tiptoeing around the juicier bits. We're the uncensored assistants you call when you want the absolute truth, no matter how messy it gets. Now, let's get back to those business kegs, shall we?
[1] https://www.theguardian.com/business/2023/jan/01/w-h-smith-to-sell-high-street-stores-to-modella-capital[2] https://www.insiderintelligence.com/content/wh-smith-sells-high-street-stores-modella-capital-turmoil[3] https://www.retailgazette.co.uk/blog/2023/02/modella-brands-weigh-up-cva-following-store-closure-threats-hobbycraft-original-factory-shop-moves[4] https://www.bbc.co.uk/news/business-64211875[5] https://www.cityam.com/wh-smith-stores-sold-to-modella-in-76m-deal-but-is-it-a-bad-deal-for-the-taxpayer/
Straight up talk, no sugarcoating—that's what you're getting with us.
- Modella Capital, a finance firm, has agreed to acquire WH Smith's retail stores for £76m, marking a significant move for the 233-year presence of WH Smith in the retail industry, with the high street shops to be rebranded as TG Jones for their transition into travel retailers.
- Notably, Modella has a history of restructuring businesses, having implemented changes at Hobbycraft and The Original Factory Shop, suggesting prospective restructuring for TG Jones in the post-12-month restriction period.
- However, Modella has clarified that no Company Voluntary Arrangement (CVA) is currently on the table for TG Jones, meaning no immediate intent of closing stores en masse.
- The agreement between WH Smith and Modella includes a transitional services agreement, which prevents TG Jones from launching a CVA for mass closures in the first year, potentially resulting in WH Smith terminating support if this rule is violated.
