WHSmith secures ‘long run future’ as sale of 500 shops attracts nearer
The long term future of the WHSmith brand has seemingly been secured, although the future of 500 UK high street stores and its large team of staff remains unknown
Historic UK high street brand WHSmith has secured its long term future – despite the sale of 500 stores still up in the air. As it stands, Private equity firms Alteri, which owns Bensons for Beds, and Hobbycraft-owner Modella Capital are said to currently be in talks to acquire the 500-store strong portfolio of WHSmith.
Previously, the business has struggled with declining sales and customer numbers, making only £32million in profit for the year ending in August 2024. Due to this, reports have suggested the brand will focus on its sites in airports as well as putting the portfolio up for sale.
Both of the remaining bidders are said to be prepping a high street review if they win, to assess how WHSmith is performing and whether they need to make changes across the business.
While there is no confirmation on when the decision will be announced, some believe it could come “within weeks,” as WHSmith interim results are revealed in April.
However, it has now emerged that WHSmith’s bosses have seemingly set about securing other parts of the business. Via investors in the United States and a bank loan, WHSmith has confirmed that it has secured a whopping £320million.
Of the £320million, £200million of that comes form US Private Placement, while the rest is a loan taken out of three years with two optional one-year extensions also a possible avenue.
Group chief financial officer Max Izzard said: “This refinancing strengthens our balance sheet, extends our debt maturity profile, and diversifies our capital structure. It also opens the door to future access to new debt investor bases, and we’re grateful for the continued support from our banking partners.”
The move does not end speculation that the 500-store sale would end the retailers 230-year history on the UK’s high street, however – even if it remains a fixture in the travel sector.
Earlier this month, and speaking exclusively to the Daily Star, entrepreneur, leadership mentor, and philanthropist Mike Greene claimed the recent issues of the company are down to the brand’s “failure to evolve”.
That has, he claimed, led it to the path of being almost on the brink of destruction at one point.
He said: “They’ve been around for decades, but most of their core categories have changed beyond recognition. They offer post office services, but stores aren’t open when customers need them. They sell books, yet e-books and Audible have overtaken the market.”
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