WHSmith: Who’s in the running to acquire its high street business?

WHSmith’s presence on the high street could soon disappear as the group mulls respective bids to acquire its 500+ stores business.

The retailer received its first round of bids last week after it placed the division up for sale last month to focus on its booming travel arm, which represents 85% of its total profits.

It is understood that the retailer’s brand is unlikely to be included in any deal, meaning a takeover could mark the end of WHSmith’s 230 years of high street history.

The division, which turned over £32m in profit in its most recent year, has attracted several high profile retail investors and Retail Gazette takes a look at who’s in the running.

Modella Capital

Private equity giant Modella Capital is keen to continue its recent acquisition spree by adding WHSmith’s high street business to its portfolio.

The firm purchased The Original Factory Shop last month, snapping up its 180 UK stores and workforce of around 1,800 employees.

The Original Factory Shop is the latest retail acquisition from Modella Capital after it snapped up Hobbycraft and 119 of its stores at the end of August.

Alteri

Alteri Investors, which is backed by American private equity giant Apollo Global Management, is another firm bidding on WHSmith’s high street stores.

The firm is understood to have made approaches to acquire The Body Shop and Kurt Geiger last year, but lost out to Aurea Investments and Steve Madden.

Alteri’s most notable retail investment in recent years is Bensons for Beds and stablemate Harveys, both of which it acquired in 2019 as part of a pre-pack deal. Both Bensons for Beds and Harveys were put into administration the following year, although Bensons was subsequently bought back by Alteri in a pre-pack deal.

The firm also briefly owned a 50% stake in Missguided in December 2021 before the fast fashion brand was bought out of administration by Mike Ashley’s Frasers Group just six months later.

Doug Putman, owner of HMV

HMV owner Doug Putman has been exploring his opportunities on the British high street for the last six years.

The Canadian billionaire, who rescued HMV out of administration in 2019, has thrown his hat in the ring to acquire WHSmith’s high street stores.

It is the latest business that Putman has had his eye on after he came close to rescuing Wilko when it plunged into administration back in 2023.

While WHSmith does not appear to be a natural stablemate for WHSmith, the  two businesses have more in common than one might assume.

WHSmith restarted selling vinyls in 80 of its stores last October, while HMV expanded its books offer the following month with the launch of a dedicated floor at its Oxford Street flagship.

Hilco

Distressed retail investor Hilco is eyeing up its next venture after it placed Homebase into administration late last year.

The firm famously acquired the DIY chain for £1 back in 2018 after Australian giant Bunnings’ botched attempt to conquer the UK.

The private equity firm is one of the high street’s most prolific investors and provides funding to the likes of Superdry, French Connection and Wilko, pre-collapse.

The firm has also been connected to big names such as HMV, Debenhams, Cath Kidston and Paperchase.

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