WH Smith in 'secret talks' to sell entire business with 500 high street stores
WH Smith in 'secret talks' to sell entire business with 500 high street stores
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High street institution WH Smith is reportedly in talks to sell its entire high street business for a whopping £1.5billion - more than 233 years after opening its flagship store in London. The store is in talks with a number of prospective buyers and has been in negotiations for several weeks., according to Sky News. WH Smith could confirm their intention to sell in a statement to the London Stock Exchange next week. WH Smith has around 500 stores in the UK, employing about 5,000 people across the country. The identities of the buyers are unclear. It comes as the company confirmed roughly 15 WH Smith shops would be closed this year.
WH Smith revealed underlying pre-tax profits of £166m for the year ending August 31, a significant rise from last year's £143m. Profits from its shops located in railway stations, airports and hospitals worldwide saw a 15% surge to £189m, with UK-based stores experiencing a fifth of this growth.
Despite a 2% drop in like-for-like sales, earnings remained steady at £32m in its traditional high street business due to cost-saving measures. WH Smith is focusing on expanding its travel shops across North America, with approximately 60 new stores in the pipeline and bids to acquire another 15 in major US airports.
The firm also continues to grow its UK travel chain, having opened 14 sites over the past financial year, with plans to open three to eight more in the coming year. However, it has reduced its UK high street division, closing 14 sites and leaving 500 remaining. The company stated that it has around 470 store leases up for renewal over the next three years, including 100 where active negotiations with landlords are underway. "We only renew a lease where we are confident of delivering economic value over thelife of that lease," the firm said. WH Smith added: "As we grow travel, the high street division will become a smaller part of the overall group.".
