Funky Pigeon future unsure as WHSmith bosses look to flog it after £76m sale
Funky Pigeon was bought by WHSmith in 2010, but its future is now in doubt after bosses admitted that it was exploring the possibility of selling the brand in the near future
The future of online card shop Funky Pigeon is in doubt after WHSmith’s bosses admitted a sale was being explored. Earlier today it was confirmed that WHSmith had agreed to sell its UK high street chain to Modella Capital in a deal valuing it at £76 million, and will eventually rebrand as TGJones.
The historic UK high street brand secured its long term future with Hobbycraft-owner Modella Capital acquiring the 500-store strong portfolio of WHSmith.
But buried deep within the announcement was a line about the now-murky future of Funky Pigeon, a brand owned by WHSmith.
It said: “The sale does not include the Group’s personalised online greeting card business, Funky Pigeon. The Group will explore strategic options for this part of the Group, including a possible sale.”
According to the company’s Linkedin page, Funky Pigeon employs between 51 and 200 people, and was bought by WHSmith in 2010.
Although Funky Pigeon’s future was not mentioned anywhere else or in official comments, Carl Cowling, WHSmith Group Chief Executive, 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.
“We have a highly successful Travel business, operating in fast growing markets in 32 countries and we are constantly innovating to deliver strong returns and meet our customers’ and partners’ needs. Our Travel business currently accounts for around 75% of the Group’s revenue and 85% of its trading profit.
“With the ongoing strength in our UK Travel division, and the scale of the growth opportunities in both North America and the Rest of the World, we are in our strongest ever position to deliver enhanced growth as we move forward as a pure play travel retailer.
He went on: “As our Travel business has grown, our UK High Street business has become a much smaller part of the WHSmith Group. 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 and for the WHSmith leadership team to focus exclusively on our Travel business. I wish the High Street team every success.
“As we look forward as a simplified, travel-focused Group, I am excited about the Group’s future prospects. With a clear strategy, a strong balance sheet, and operations in high growth and attractive markets, we are well-positioned to generate substantial growth and value for all stakeholders.”
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