Just two buyers left in race to buy WH Smith high street division – report

There are only two buyers left in the race to buy retailer WH Smith’s ailing high street division, according to a report.

The retail group confirmed in January it was seeking a buyer for its 500 UK high street shops, in a shake-up that would leave it free to focus on its more successful travel arm, where it has stores in railway stations, airports and hospitals in the UK and abroad.

Restructuring firm Alteri and the Hobbycraft owner Modella Capital, both of which have experience in buying troubled retailers, are the only two parties remaining in talks about a deal, according to Sky News.

The owner of HMV, Doug Putman, who was seen as a potential bidder for the chain, is reportedly no longer in talks with bankers at Greenhill about an offer.

The Guardian understands that bidders have submitted first-round offers for the chain to WH Smith in the past few weeks, and the sale process is ongoing with the hope of a deal being completed in April.

Alteri, which owns retailer Bensons for Beds, previously had a majority stake in fast fashion retailer Missguided, which collapsed into administration in 2022, while Modella Capital acquired arts and crafts retailer Hobbycraft in 2024.

Retail analysts anticipate that both potential bidders would close a significant number of WH Smith’s high street stores after taking control, which has created uncertainty for the 5,000 employees in those shops.

Any deal would leave WH Smith’s eponymous parent company, which is listed on the stock market, free to focus on its growing travel division, which operates across 32 countries and which accounted for three-quarters of the group’s revenue in the year to the end of August.

The retailer’s high street division, where it sells newspapers, books, stationery, cards and gifts, reported falling sales in its UK stores in the 21 weeks to 25 January, at the same that revenues rose at its travel arm.

One of the world’s oldest retailers, WH Smith can trace its history back to 1792, when it was established in Little Grosvenor Street in London by Henry Walton Smith and his wife, Anna, later expanding to become one of the UK’s best-known retail chains.

WH Smith declined to comment.

Alteri, Modella Capital and Putman Investments have been contacted for comment.