The retailer, which has stores in Connie Street and Monks Cross, is in talks to offload 500 high street stores, as reported in the Sunday Times.
The culmination of the sale will almost certainly result in the disappearance of the ever-present high street brand since 1792, when W.H. Smith opened its first store in central London. It raises concerns that retail groups are distancing themselves from fallout from sales and asking for quick questions about the long-term future of many stores.
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The auction, run by Greenhill's bankers, has attracted interest from investment companies Alteri and Modella Capital, both specializing in purchasing and restructuring of struggling retailers. The first round bid was submitted last week.
WH Smith's High Street Arms are stuck with long-term declines as they are combined to separate customers from the High Street, as well as increased supermarkets, discounts and online shopping.
The retailer's average lease length for 500 high street stores is only two years, with a growing prospect that many performant outlets could soon be closed under new owners. Almost 200 WH Smith stores also include post offices.
WH Smith's High Street business generated so-called trading profits of £32 million with annual sales of £452 million through August. Similar sales fell by 3% in the 21-week high street business ending January 25th.
Group's travel retail business has its stores traded under WH Smith Banner, and under Inmotion and MRG, generating 85% of the group's profits.
Potential buyer – Doug Putman, the Canadian tycoon who rescued HMV, will set the time frame required to abandon the brand name. A source close to WH Smith said that bidders were attracted to retailers due to their strength across multiple product categories and a clear “High Street Hub” strategy. The deal licensed by the new owner is understood to be unlikely to have a WH Smith brand name, but that is not entirely a problem.
WH Smith began as a news vendor and once owned the bookstore Waterstones and Music Retailer Our Price, but enjoyed Halcyon days in the 70s and 80s. But when shoppers abandoned High Street, Smith responded by cutting costs and reducing investments in High Street Estates.
The Malton Store at Wheel Gate was previously a Woolworth Store. It is also next to Halifax Bank, which will be closed next month.
