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February 8, 2025
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WHSmith ‘could see job losses and store closures’ as private equity suitors eye up £100million takeover of its High Street shops


Thousands of WH Smith workers face uncertainty as private equity suitors eye a deal to take control of the retailer’s high street shops.

It comes after the historic UK business confirmed over the weekend that it has held talks over potentially selling its 500-strong high street store business.

The company said it is assessing options for the division as it seeks to focus on its larger travel operation.

It is understood private equity groups Hilco and Alteri are among parties to raise interest over a possible takeover move for the business, after WH Smith launched the process late last year.

Both Hilco and Alteri have experience in UK retail as turnaround specialists.

However, this may raise concerns among some workers over what a private equity takeover deal would mean for the future of the WH Smith high street estate and roughly 5,000 workers.

Peel Hunt analyst, Jonathan Pritchard, said that while there is limited scope for a new owner to cut jobs in an efficiency drive, some could consider further store closures.

He said: ‘It is hardly as though this is a fat business, with lots of inefficient processes and store staff dossing about. Quite the opposite.

WHSmith's are typically found on high streets, as well as in stations and airports

WHSmith’s are typically found on high streets, as well as in stations and airports 

WH Smith, which sells stationary, books, and is home to many UK post offices, has round 500 stores in Britain and employs 5,000 people across the country

WH Smith, which sells stationary, books, and is home to many UK post offices, has round 500 stores in Britain and employs 5,000 people across the country

It is understood private equity groups Hilco and Alteri are among parties to raise interest over a possible takeover move for the business

It is understood private equity groups Hilco and Alteri are among parties to raise interest over a possible takeover move for the business

‘Store closures could be material in somebody else’s hands, but WH Smith itself, clearly, has a good line of site on how to get the most out of the chain, and it is unlikely that anyone else has the silver bullet to regalvanise profitability here.’

It is understood that WH Smith plans to retain its name for its travel business and could therefore strike a sale deal which will not include the use of the brand on the high street or it could involve a licensing process.

This is expected to be part of the negotiation process for prospective buyers.

Shares in WH Smith lifted higher on Monday as investors prepare for a potential cash windfall from a sale.

Analysts have predicted that the high street business could be sold for £100 million or more in the coming months.

Mr Pritchard predicted the company would sell the business for between £100 million and £130 million based on recent earnings.

Earnings remained flat at £32 million in the traditional high street business despite a 2% drop in like-for-like sales thanks to cost-saving efforts.

Investec analyst Kate Calvert predicted that the business will deliver lower earnings, at about £27 million, for the current year.

Pictured: Undated photo of the exterior of a London WHSmith. The British retailer is in talks to potentially sell its 520 high street stores

Pictured: Undated photo of the exterior of a London WHSmith. The British retailer is in talks to potentially sell its 520 high street stores

Established in 1792, WHSmith's first shop was opened by Henry Walton Smith and his wife Anna

Established in 1792, WHSmith’s first shop was opened by Henry Walton Smith and his wife Anna 

The business enjoyed a retail renaissance in the 1970s when it came under new management - having always previously been a family-run company

The business enjoyed a retail renaissance in the 1970s when it came under new management – having always previously been a family-run company

Ms Calvert added: ‘This is not a surprise and has been an obvious next step in the group’s evolution for a number of years given the investment focus has been on travel for a long time.’

The company stressed that the possible deal is part of its strategy to focus on its more profitable and growing travel business.

It said: ‘Over the past decade, WH Smith has become a focused global travel retailer,’ the statement continued.

‘The group’s travel business has over 1,200 stores across 32 countries, and three-quarters of the group’s revenue and 85% of its trading profit comes from the travel business.

‘There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.’

Earlier this month, WHSmith announced it is set to close 17 of its stores, following a string of closures last year. 

At the height of its popularity, half the British population purchased their newspapers from WHSmith.

In 1792, Henry Walton Smith opened a newsagent on Little Grosvenor Street in London with his wife Anna.

Pictured: WHSmith's bookstall at Waterloo Station in London in 1960. In 1792, Henry Walton Smith opened a newsagent on Little Grosvenor Street in London with his wife Anna

Pictured: WHSmith’s bookstall at Waterloo Station in London in 1960. In 1792, Henry Walton Smith opened a newsagent on Little Grosvenor Street in London with his wife Anna

At the height of its popularity, half the British population purchased their newspapers from WHSmith

At the height of its popularity, half the British population purchased their newspapers from WHSmith

Pictured: The WHSmith store in Huntingdon in 1986, which featured the branding brought in in 1973

Pictured: The WHSmith store in Huntingdon in 1986, which featured the branding brought in in 1973

18 years later, their sons William and Henry inherited the business and renamed it after themselves.

In 1848, the brothers founded their first newsstand in Euston station – and were named the UK’s principal newspaper distributor two years later, leading them to open depots in Liverpool, Manchester and Birmingham.

In the 1960s, the quintessentially British chain was famed for its sleek interiors and state-of-the-art listening pods, which allowed customers to listen to records before buying them.

Buoyed by this success, the business enjoyed a retail renaissance in the 1970s when it came under new management – having always previously been a family-run company.

In the 1970s, the Smith family finally sold the business, which had maintained the same classic oak-fronted shops with their ‘WHS’ logo for almost 200 years. 

The company went from strength-to-strength when they bought Paperchase and Our Price Music in 1986, thereby establishing themselves as a heavyweight in both the record and stationery retail worlds. 

But like other legacy retailers, WHSmith struggled to adapt in the digital age – as print media moved online and the popularity of Kindles sky-rocketed.

While some experts said the brand ‘abandoned their heritage’, others pointed out how supermarkets increasingly began stocking newspapers, books, CDs and DVDs in the noughties, which put a strain of WHSmith’s hold on the market.

Pictured: Customers shop for magazines and newspapers at a WHSmith shop in London in April 2008

Pictured: Customers shop for magazines and newspapers at a WHSmith shop in London in April 2008

In 2009, WHSmith was slammed after a Mail on Sunday investigation revealed they had increased the prices at their stores in hospitals.

In 2011, retail expert Mary Portas – who was hired by ex-PM David Cameron to revamp Britain’s high streets – famously referred to WHSmith as a ‘dump’.

She fumed on Twitter: ‘I truly hate WHSmith. Used to be a loved British biz & now a dump. Rush hour, 7.45am at Euston. One person on till. Queues. And s****y promos.’ 

Hilco declined to comment. Alteri has been contacted for comment.



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