WH Smith may vanish from excessive streets because of a catch within the sale of its shops.
Struggling to compete with on-line buying and low cost shops, the 230-year-old retail chain is trying to unload its 500 excessive avenue shops so it might give attention to its extra profitable outlets in practice stations, airports and hospitals.
As an alternative of splitting the corporate into two companies with one identify, chief govt Carl Cowling is known to need whoever buys the excessive avenue aspect to run it with new branding, The Occasions stories.
‘WH Smith has a really disparate product providing and the model identify has been the glue that has held it collectively’, in line with retail skilled Richard Hyman, of Aria Clever Options consultancy.
‘With out that it’s going to be very tough [for a new buyer].’
The retailer has already closed 16 excessive avenue shops within the UK since 2024, and it has one other 10 deliberate this yr.
Final yr was one of many worst ever recorded for the British excessive avenue, with over 13,000 retailer closures from massive manufacturers reported.
However long-term decline and an exclusion of the model identify doesn’t seem to have dampened curiosity in WH Smith.
Amongst these eyeing up the property at public sale, run by Greenhill bankers, are Alteri and Modella Capital – funding companies specialising in shopping for and restructuring distressed retailers.
Doug Putman, the Canadian billionaire who rescued HMV and has reportedly been scouting extra UK enterprise alternatives, has additionally been touted as a possible purchaser.
WH Smith’s excessive avenue revenues dropped 3% within the 21 weeks to January 25, in comparison with the identical interval the yr earlier than.
The remainder of the enterprise skilled development in that point, with the journey retail enterprise producing 85% of earnings, indicating the diverging fates of the corporate.
Comparatively brief leases – two years on common – imply loss-making or underperforming shops might be closed rapidly by a brand new purchaser.
Round 200 WH Smith excessive avenue shops even have a put up workplace.
Different excessive avenue manufacturers going through closure embrace 100 New Look shops, and a collection of Greggs, Trespass and Dobbies branches.
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