WHSmith has completed the sale of its 海角视频 high street business to Hobbycraft owner Modella Capital for £12m less than originally agreed.
The Swindon-headquartered retailer said a "period of softer trading" following the announcement in March - and a reduction in cash flow - meant it was forced to revise the deal.
This historic group now expects to secure gross cash proceeds of up to £40m from the sale of its 480 branches compared to the £52m initially announced.
READ MORE: {}
In March, the FTSE-250 firm confirmed it had agreed to dispose of its high street arm in a deal valuing it at £76m.
"Having reflected carefully on the options and alternatives and, in particular, the value to the group and its shareholders of ensuring a successful completion of the transaction, the group entered into negotiations to establish revised terms for the transaction given the original agreement was no longer deliverable," WHsmith said in a statement on Monday (June 30).
The deal will see some 5,000 staff transferring to Modella Capital, and the WHSmith brand disappearing from Britain's high streets for the first time in 200 years, replaced by TGJones
WHSmith has previously said it is planning to focus on its travel stores in airports and train stations, as well as overseas markets.
"This transaction is consistent with the group's strategic focus on travel retail and creates a pure play global travel retailer which is well positioned to capture the substantial global growth opportunities in its key markets and drive enhanced shareholder value," the company added.
Most Read
Following the sale, WHSmith expects headline net debt as of August 31, 2025, to be around £425m.
The group said its travel divisions are predicted to continuing trading in line with market expectations as the business enters the peak summer trading period.
For the half-year running up to February 28, WHSmith's high street branch reported profits of £15m, a drop from the previous year’s £22m. Meanwhile, sales dipped by 7% to £239m.