WH Smith has agreed to sell its UK high street chain to Modella Capital in a deal valuing it at £76million, and will eventually rebrand as TGJones, the company has announced. WH Smith PLC said today it has agreed the sale of its high street business to Modella Capital, creating a “pure play global travel retailer”. The group’s chief executive, Carl Cowling, said it will exclusively focus on travel and aim to become the leading global retailer. The high street business will “operate for a short transitional period under the WHSmith brand whilst the business rebrands as TGJones”.

The WHSmith brand is not included in the sale, and the firm’s travel divisions will continue to trade under the name across 32 countries, including at major airport locations, hospitals and rail stations in the UK. Mr Cowling added that the UK high street business has become a “much smaller part of the WHSmith Group”. He said: “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.”

Mr Cowling added: “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.”

Established in 1792, WHSmith’s first store was opened by Henry Walton Smith and his wife Anna in Little Grosvenor Street, London.

In 1848, it opened the first ever travel retail store in London’s Euston station in 1848.

The firm has been in business for more than 230 years, and has more than 1,700 stores in over 30 countries.

Now, WH Smith’s future will be as a “simplified, travel-focused Group”, its chief said.

Mr Cowling added: “I am excited about the Group’s future prospects.

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“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.”

It was reported earlier this week that the company was deciding between two potential buyers. The 233-year-old retailer was to sell to either Alteri Investors, which owns Bensons for Beds, or Modella Capital, the owners of Hobbycraft, according to Sky News.

Insiders reportedly said the deal was “too close to call” between the two bidders in the auction being handled by Greenhill.

It follows WHSmith, which employs around 5,000 people, closing eight high-street stores last year, and announcing that 17 are set to close in 2025.

A total of nine stores are set to close in April, May and July. Both potential buyers have experience taking over troubled retailers, with Modella Capital having recently bought The Original Factory Shop and joined the bidding for Lakeland.