In a strategic overhaul, WH Smith has narrowed down the potential buyers for its struggling high street division to just two, according to recent reports. The retail giant, which is notably one of the world’s oldest retailers dating back to 1792, announced in January its intention to dispose of its 500 UK-based high street shops. This move is aimed at enabling WH Smith to concentrate on its thriving travel retail segment that operates in numerous countries and accounts for the majority of the company’s revenue.
Restructuring firm Alteri and Modella Capital, the owner of Hobbycraft, are the two entities currently in talks to acquire the ailing high street business. Both firms have a history in acquiring and turning around distressed retail businesses. Alteri previously held a majority stake in Missguided, which entered administration in 2022, while Modella Capital acquired Hobbycraft in 2024.
Doug Putman, the owner of HMV, who was initially considered a potential bidder for the chain, is reportedly no longer in discussions with bankers about an offer. Bidders have been invited to submit their offers for WH Smith’s high street chain, with the sale process expected to conclude in April.
Analysts predict that either Alteri or Modella Capital, if successful, will likely close a substantial number of WH Smith’s high street stores, casting uncertainty over the future of its 5,000 employees in those retail spaces. The sale would grant WH Smith the freedom to devote its resources to expanding its travel arm further.
The company’s high street division, which has seen a decline in sales in recent months, contrasts with the increasing revenues of its travel business. The division is responsible for the sale of newspapers, books, stationery, cards, and gifts. This strategic pivot represents a significant chapter in the long history of WH Smith, which was originally established in London by Henry Walton Smith and his wife, Anna, in 1792.
Source: https://www.theguardian.com/business/2025/mar/09/two-buyers-left-buy-wh-smith-high-street-division-alteri-modella
