The proprietor of Hobbycraft is amongst a pack of suitors circling WH Smith, the 233-year-old excessive road chain which has been put up on the market.
The probability of Modella finishing a deal to accumulate the 500-store chain was unclear on Monday.
Modella’s executives embrace Steve Curtis, whose biography on the agency’s web site describes his “successful transactions [as including] Jigsaw, Paperchase, Feather & Black, Rolling Luggage and Tie Rack”.
One of many agency’s funding advisers is Jamie Constable, a distinguished turnaround investor who’s related to corporations together with Rcapital, Quilam Capital and Blazehill Capital.
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The disposal would, if accomplished, depart London-listed WH Smith as an organization centered on its extra profitable journey retail operation in airports, railway stations and hospitals, which contains about 1,200 shops globally.
Modella is alleged to be bidding towards quite a lot of different skilled retail buyers, together with the Apollo-backed agency Alteri, which owns the Bensons for Beds chain.
WH Smith, which is being suggested by bankers at Greenhill, declined to touch upon Monday, whereas Modella has been contacted for remark.
A sale of its excessive road arm would mark a watershed second for the UK excessive road, which first noticed the looks of the identify in 1792.
The enterprise, which specialises in promoting gadgets corresponding to greeting playing cards and stationery, employs about 5,000 folks throughout the nation.
Run by Carl Cowling, chief govt, the disposal of its excessive road arm and repositioning as a pure-play journey retail firm was welcomed by buyers on Monday, with shares in WH Smith rising by about 2.5%.
The division recorded flat working revenue of £32m final 12 months, with WH Smith’s journey enterprise accounting for 75% of the corporate’s income and 85% of buying and selling revenue.
There have been questions on the way forward for WH Smith’s excessive road division for a few years amid carnage elsewhere within the sector, with the likes of BHS, Debenhams and Comet all ceasing to commerce from bodily shops within the final 15 years.
Final week, it emerged that roughly 15 WH Smith outlets could be closed this 12 months – a part of an annual rationalisation of its retailer property.
“WHSmith confirms that it is exploring potential strategic options for this profitable and cash-generating part of the group, including a possible sale.
“Over the previous decade, WHSmith has turn out to be a centered international journey retailer. The group’s journey enterprise has over 1,200 shops throughout 32 international locations, and three-quarters of the group’s income and 85% of its buying and selling revenue comes from the journey enterprise.
“There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
