WH Smith to be sold to Modella Capital
Whispers in the business world are suggesting that WH Smith is on the verge of selling its high street stores to Modella Capital, the current owners of Hobbycraft, in a deal valued at a substantial £76 million. News from The Guardian indicates that the high street brand will undergo a rebranding process and be renamed as TGJones following the completion of the deal by June. The agreement stipulates that WH Smith will maintain its brand identity for its travel stores in key locations such as airports, train stations, and hospitals. However, the retailer will cease online operations under the WH Smith name as part of the transition.
During periods of organizational acquisitions, uncertainty often prevails among employees within the organizations in question. HR experts stress the pivotal role of HR in supporting staff members to not just survive but thrive amidst such changes. Nick Petschek, the EMEA managing director for organizational change management firm Kotter International, highlights that corporate mergers and acquisitions can generate a sense of insecurity among employees. In response to this, HR needs to empower employees to transition from “survive mode,” characterized by anxieties about change, to “thrive mode,” where they can focus on the future with confidence. Clear, early, and frequent communication from HR and leadership about integration strategies, combined with offerings like retention bonuses and upskilling opportunities, can communicate commitment to the workforce.
Steve Foulger, director of NFP, emphasizes the importance of having a comprehensive people strategy during transformative times like acquisitions. Foulger underscores that employees are a critical element in M&A deals and should not be overlooked. Understanding the buyer’s intentions early on can alleviate concerns surrounding job security, roles, and contract alterations that employees may have. Integrating HR or people specialists into the transition process from the outset can ensure a seamless integration that minimizes distractions, aligns cultures, and retains key talent – factors crucial for preserving the appeal of the business as an acquisition target.
Established in 1792 with a store in London, WH Smith boasts a rich heritage, with its first travel outlet opening at Euston Station in 1848. With over 480 stores scattered across UK high streets, shopping centers, and retail parks, the brand is home to more than 5,000 employees.
Claudia de Silva, an organizational consultant, underscores the importance of leveraging external HR and people support during acquisitions to address employee anxieties effectively. Bringing in expert consultants can facilitate a smoother transition and provide employees with a safe space to express concerns. Amidst change, anxiety can engulf all levels of the organization, making it vital for HR and employers to acknowledge and navigate these emotions constructively. Defensive behaviors, a common manifestation of anxiety, can be effectively managed with the right external support, ensuring a more stable transition process.