It's the end of the line for Gloucestershire's seven branches of WHSmith – at least as we know them.

As updated by Punchline-Gloucester.com earlier this month, the 233-year-old retail name has been in talks to offload its huge UK chain of stores. Today, it announced that Hobbycraft owner Modella Capital, a London-based private equity group founded in 2022, is stepping in to take over the familiar name, with stores set to be rebranded as 'TGJones'.

The move affects seven outlets in Gloucestershire, with a WHSmith presence on Eastgate Street in Gloucester, the high streets of both Cheltenham and Tewkesbury, on King Street in Stroud and Cirencester's Castle Street - as well as a brace at the M5's Michaelwood Services north and southbound.

Modella, which also owns the Original Factory Shop chain (with branches at Lydney, Cinderford, Bishop's Cleeve and Stroud), is paying £76m for the iconic brand, though WHSmith's 1,300 travel shops will not be part of the transaction. The deal breaks down into gross cash proceeds of £52m with anticipated net cash proceeds of around £25m when adjusted for transaction and separation costs.

In a statement, WHSmith said the transaction was consistent with the group's strategic focus and "will allow management to concentrate on capturing the substantial growth opportunities in its key travel markets with a clear focus on driving shareholder value".

Over time, the retailer said it had increased its focus on travel, which now delivered 75% of the group's revenue and 85% of its trading profit in the last financial year.

It said: "By removing exposure to the UK High Street and with circa 50% of the business now international, the transaction will enhance the Group's financial profile."

Carl Cowling, WHSmith CEO, 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."

Apace with the growth of its travel business, he said UK high street business had become "a much smaller part of the WH Smith Group".

But he 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."

Modella's declared mission is to take on retail and consumer businesses with a turnover of £10m to £1bn across the UK and Western Europe.

In its statement, the comnpany said that 'TGJones' felt like "a worthy successor" to the WHSmith brand and had been chosen to give the same "family" feel".

They added: "Jones carries the same sense of family and reflects these stores being at the heart of everyone's high street."

Modella currently runs 800 stores under various brands it also owns Create & Craft and Crafter's Companion. In an indication which suggests a positive outcome after months of speculation, the group said the move was "very much business as usual" while it looked to define and execute a strategy for WMSmith's existing retail offer and introduce new offerings.

● Any loss of existing stores could also affect postal services: at the start of 2025, the Communication Workers Union voiced fears that closures would see communities become "postal deserts", given the status of 200 post offices which are embedded in WMSmith outlets.