WH Smith Sells High Street Arm, Refocuses on Travel

WH Smith has completed the sale of its 230-year-old UK high street business to Modella Capital at a substantially reduced price, following weaker trading and a cautious outlook. The deal, initially valued at £52 million, was renegotiated to a maximum of £40 million as a result of softer trading and reduced cash flow. Modella Capital will rebrand the acquired stores as TGJones, marking WH Smith's exit from the high street after more than two centuries. The broader UK retail sector continues to struggle, with declining retail sales volumes cited as a concern. WH Smith shares fell about 5% following the announcement, and the company now projects headline net debt of roughly £425 million by August 2025. Transaction and separation costs remain at £27 million, while WH Smith focuses fully on its travel retail business.