WHSmith buyer Modella restricted from mass shop closures for 12 months
The new owner of WHSmith’s high street stores, Modella Capital, has been restricted from carrying out widespread store closures for at least 12 months, following its acquisition of the chain.
The new owner of WHSmith’s high street stores, Modella Capital, has been restricted from carrying out widespread store closures for at least 12 months, following its acquisition of the chain.
Under the terms of a transitional services agreement (TSA) between WHSmith and Modella Capital, which facilitated the £76m sale of 480 high street stores, the buyer is prohibited from initiating a company voluntary arrangement (CVA) or significant store closures within the first year of ownership.
Modella plans to rebrand the stores under the TG Jones name, and will be able to use WHSmith’s systems during this transitional period.
However, the agreement effectively bars any immediate restructuring plans, including the closure of stores, providing the retailer time to assess its new acquisition.
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The sale marks the end of 233 years of WHSmith’s high street presence, with Modella continuing to focus on restructuring other properties in its portfolio, including Hobbycraft and The Original Factory Shop.
Modella’s acquisition comes after a challenging period for WHSmith’s high street business, which saw a decline in profits and sales. The sale aligns with WHSmith’s strategic shift to concentrate on its expanding global travel retail operations.
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