WH Smith buyer 'faces 12-month ban' on mass shop closures

WH Smith buyer 'barred' from store closures for whole YEAR following mega £76m deal

WH Smith buyer 'barred' from store closures for whole YEAR following mega £76m deal - The new owner of WH Smith's high street chain has been effectively barred from

WH Smith buyer 'faces 12-month ban' on mass shop closures

The London-listed retail group would have the right to terminate a services agreement with Modella Capital if it launched mass shop closures within 12 months of buying WH Smith’s high street arm, Sky News learns.

WH Smith Buyer 'faces 12-month Ban' On Mass Shop Closures - Great Yorkshire Radio

Sky News has learnt that WH Smith would have the right to cancel a year-long transitional services agreement (TSA) put in place with Modella Capital – which struck a deal to acquire the business in March – if it launched a company voluntary arrangement (CVA) before the first anniversary of the transaction’s completion. The clause in the TSA, which enables Modella Capital to continue using WH Smith’s systems after it takes ownership, is significa…