Potential Acquisition Talks Underway for Retail Giant’s Stores

  • Hobbycraft owner Modella Capital in talks with WHSmith for potential acquisition
  • WHSmith focusing on travel retail business
  • Bensons for Beds owner Alteri also bidding for WHSmith’s high street portfolio
  • No certainty of agreement reached, updates to be provided as appropriate

Modella Capital, the owner of crafts retailer Hobbycraft, is reportedly in discussions with WHSmith regarding a possible acquisition of its high street business. The company acquired Hobbycraft in August and is said to be one of several experienced investors, including Bensons for Beds owner Alteri, bidding for WHSmith’s 500+ store portfolio. WHSmith has been focusing on its travel retail business, which now accounts for 85% of the group’s trading profit. The high street division recorded a flat operating profit of £32 million last year with sales dropping 4% to £452 million. No certainty of an agreement being reached, and updates will be provided as appropriate.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the potential sale of WHSmith’s high street chain, mentions Modella Capital as one of the interested parties, and includes relevant details about the company’s performance. However, it lacks some specifics on the discussions and doesn’t provide a definitive conclusion.
Noise Level: 6
Noise Justification: The article provides some relevant information about potential business deals and company strategies but also includes some irrelevant details such as the mention of 2024 and the unrelated job cuts in retail sector.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses potential acquisitions and sales of WHSmith’s retail stores, which could impact the financial markets and companies involved in the process. It mentions Modella Capital acquiring Hobbycraft and exploring strategic options for WHSmith’s high street chain, as well as other retail investors bidding for the portfolio.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text, and it does not meet the criteria of having happened in the last 48 hours.

Reported publicly: www.retailgazette.co.uk