Ipswich's WHSmith to rebrand as TGJones after £76m high street sale

Why it matters: The £76 million deal will see the WHSmith name disappear from high streets across the country, with approximately 480 stores and 5,000 staff transferring to new ownership. It will, thankfully, not result in another prominent vacant town centre unit.

The details: The sale does not include WHSmith's travel locations, such as the shop in Ipswich railway station, nor the WHSmith brand itself.

The travel division, which has become the key focus of the group in recent years and includes shops in airports, train stations and hospitals, will remain unchanged.

That division now makes up the bulk of WHSmith's sales and profits, having grown to more than 1,200 stores across 32 countries.

What they're saying: Group chief executive Carl Cowling said: "As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel.

"As our travel business has grown, our UK high street business has become a much smaller part of the WHSmith Group.

"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. I wish the High Street team every success."

For context: The sale to Modella Capital represents an enterprise value of £76 million on a cash and debt-free basis.

Modella Capital specialises in investing in retailers. It has previously put money into chains including Paperchase and Tie Rack. In August, it snapped up arts and crafts retailer Hobbycraft for an undisclosed sum.

The bottom line: While Ipswich's high street WHSmith will be rebranded as TGJones under new ownership, the company will maintain its presence at Ipswich railway station as it refocuses on its successful travel retail strategy.