HMV and Hobbycraft owners among a number of suitors who have expressed interest in buying the retailer’s high street estate.
News broke over the weekend that the retail chain is looking to offload its 500 high street stores and instead focus on its more lucrative travel business. Sky News first broke the story on Saturday 25 January, revealing that “bankers at Greenhill have been appointed to run the sale process for the high street business, with a deal expected in the coming months.”
WHSmith confirmed in a short press release that it is exploring potential strategic options for the high street 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 75% of the Group’s revenue and 85% of its trading profit comes from the Travel business.
Earlier this month WHSmith Group reported a strong performance in its travel business, with profits up 22% and revenues growing 11%. In contrast, the high street division saw a 9% decline in profits, with sales dipping by 4%.
Among those reported to be eyeing up the high street stores are HMV owner Doug Putman, Hobbycraft owner Modella Capital and Bensons for Beds owner Alteri.
The news of the sale of the high street arm of the business comes after last week the Group announced that 17 high street stores will be closing between now and May.
