Only two buyers remain in the competition to acquire WH Smith’s struggling high street division, as the retailer moves closer to a sale. Restructuring firm Alteri and Hobbycraft owner Modella Capital are still in talks, while other potential bidders have withdrawn.
WH Smith announced in January that it was looking to sell its 500 high street stores to focus on its more profitable travel division. The company’s travel arm, which operates in airports, railway stations, and hospitals across 32 countries, now generates most of its revenue.
Sky News reported that Doug Putman, owner of HMV, is no longer in discussions with bankers at Greenhill about making an offer. Meanwhile, both Alteri and Modella Capital have submitted first-round bids, with hopes of finalizing a deal by April.
Alteri owns Bensons for Beds and previously had a majority stake in fast fashion retailer Missguided, which collapsed in 2022. Modella Capital, which acquired Hobbycraft in 2024, also has experience in retail turnarounds.
Retail analysts predict that the 500 high street stores will face significant closures if the sale goes through. This has raised concerns for the 5,000 employees working in these locations. WH Smith has struggled with declining sales in its UK high street stores, while its travel division continues to expand.
A sale would allow WH Smith’s publicly listed parent company to focus entirely on its travel business. In the 21 weeks to 25 January, high street sales declined, while the travel arm saw revenue growth.
Founded in 1792 by Henry Walton Smith and his wife Anna, WH Smith has been a major name in British retail for over two centuries. However, changing shopping habits and competition from online retailers have challenged its high street presence.
WH Smith declined to comment on the sale process. Alteri, Modella Capital, and Putman Investments have also been contacted for statements. The outcome of the deal will determine the future of one of the UK’s oldest retail chains and its 500 high street stores.
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