WH Smith is in talks to sell its entire high street business in Britain after 233 years.
The retailer, which is said to have a total market value of almost £1.5 billion, has secretly been in talks with prospective buyers for weeks, Sky News reports.
WH Smith, which sells stationery, books, and is home to many UK post offices, has round 500 stores in Britain and employs 5,000 people across the country.
The talks relate only to high street stores and not shops which are part of the firm’s travel arm – those at train stations and airports – or those in hospitals.
These amount to around 600 stores which are safe in the UK – out of 1,200 travel stores worldwide.
Although the store has typically performed poorly in customer service measures, its high street division still had a profit of £32 million last year.
But by contrast the travel arm now makes 75 percent of the brand’s revenue, and 85 percent of its profits.
Chief executive Carl Cowling is understood to be seeking buyers for the high street brand in a historic moment for British shopping – although the identity of any buyers have not been revealed.
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
WHSmith’s are typically found on high streets, as well as in stations and airports
Established in 1792, WHSmith’s first shop was opened by Henry Walton Smith and his wife Anna
WH Smith opened its first store in Little Grosvenor Street, London in 1792.
The shop was run by Henry Walton Smith and his wife Anna, and quickly expanded to other venues.
By 1848, the brand had opened its first travel store at Euston Station – two years after it was handed to the couple’s sons, William Henry Smith and Henry Edward Smith.
By 1860 the younger WH Smith had taken full control and he eventually moved into politics, becoming an MP in 1868 and eventually the First Lord of the Admiralty in 1877 and First Lord of the Treasury in 1887.
Upon his death aged 66 in 1891, his wife was created as Viscountess Hambleden and his eldest son, William Frederick, who became the second Viscount Hambleden in 1913, took over the business.
Now, its headquarters are based in Wiltshire and the brand has stores in 28 countries around the world.
It comes after it was announced this week that 17 stores will be closed this year.
Those affected are in Bournemouth (two stores), Luton, March, Basingstoke, Newtown, Rhyl, Bolton, Accrington, Halstead, Halesowen, Diss, Newport (Wales), Haverhill, Stockton, Oldham and Orpington.
The retailer announced the closure of 17 stores across the UK this week
WHSmith opened its first travel retail store in London’s Euston station in 1848
A WHSmith delivery van is seen in 1899, more than a century after the first store opened
WHSmith was once a much-loved part of every British high street
Over the last two years, WH Smith has closed 10 stories, including locations in Manchester, Crewe, Ramsgate, Bicester, Somerset and Sale.
The retailer was voted Britain’s worst or second worst high street retailer for nine straight years from 2011 to 2019, in a poll conducted by consumer watchdog Which?.
Customers became exacerbated by the chain’s declining state, with its seemingly random stock, shabby carpets and disorderly presentation.
On Friday, shares in WH Smith closed at 1148p – down around 5 percent over the last year.
A spokesperson for WH Smith said: ‘WHSmith confirms that it is exploring potential strategic options for this profitable and cash generative part of the Group, including a possible sale.
‘Over the past decade, WHSmith has become a focused global travel retailer.
‘The Group’s Travel business has over 1,200 stores across 32 countries, and three-quarters of the Group’s revenue and 85 percent 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.’
