WHSmith. The name was the business.
WHSmith rebranded on the high street last year. Most people didn't notice, and now it's closing 150 stores. The name above the door is the business.
THE GIST ON WHSMITH: "Sign of the Times"
What did the deal look like on paper?
WHSmith has been on the British high street since 1792. You probably bought your pencil case there, or a birthday card on the way to a party. Last year it sold all 500 UK high street shops to private equity firm Modella Capital for 40 million pounds.
The airports, stations and hospitals stayed within the WHSmith Group, and those are 85% of the company's profit. The deal made sense on paper.
What was missing?
The seller kept one detail that changed everything: the name. Modella had to reinvent one. It came up with TG Jones, same blue colour, same font, and rebranded every shop in October.
What happened next?
Sales collapsed. Last month Modella announced 150 closures, and its own statement blamed the rebrand. TG Jones may not survive the year. Meanwhile WHSmith Group, the listed company that kept the name, is recording record profits, with refurbished airport shops up 40% in sales.
What is the lesson?
Every old brand we grew up with has the same invisible asset: a name that took 233 years to build and cannot be replaced. The bits of an old brand that look outdated are usually the bits keeping it alive. So what's worth more, the goods on the shelves or the name above the door?
What is worth more, the shelves or the name?
Your take. One tap, then see how everyone else voted.
Quick answers
Who bought the WHSmith high street shops?
Private equity firm Modella Capital, for 40 million pounds, covering all 500 UK high street shops.
What is TG Jones?
The name Modella created for the shops because WHSmith kept the name. It rebranded every shop in October.
What did WHSmith Group keep?
The airports, stations and hospitals, which are 85% of the company's profit, and the name.
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