WH Smith confirm talks to sell high street stores

WH Smith has confirmed that it is in negotiations to sell its entire high street business empire more than 230 years after it first opened its first shop.

The retail group, which has a market capitalisation of almost £1.5 billion, has been in negotiations with several prospective buyers for several weeks.

WH Smith will confirm the plan to the London Stock Exchange on Monday morning, Sky News reports.

The high street stalwart comprises roughly 500 stores and currently employs around 5,000 people across the UK.

It is currently part of the same retail group as WH Smith's faster-growing and more profitable travel retail business which operates from airports, train stations and hospitals.

These smaller WH Smiths stores have 600 shops in the UK, with roughly half of the  global operation numbering about 1,200 travel retail outlets.

The travel business now accounts for 75% of the company's revenue, and 85% of profits.

Bankers at Greenhill have been appointed to run the sale process for the high street titan, with a deal expected to be finalised in the coming months, it has been reported.

As of Saturday January 25 no likely buyers have come to light.

WH Smith's high street division, which recorded flat operating profit of £32m last year, still largely sells greeting cards, books and stationery, while the travel arm has a wider offering of food and drink, and technology products.

The historic high street chain first opened its doors in 1792 by Henry Walton Smith and his wife Anna in London. (Image: Chris Radburn/PA Wire) The company's retail business in hospitals is also growing rapidly, with 145 stores in 100 hospitals across the UK, and scope for opening 200 further shops.

WH Smith's first store was opened in 1792 by Henry Walton Smith and his wife Anna in London. The business opened its first travel retail store in Euston station in 1848.

The company issued a statement to Sky News confirming it was "exploring potential strategic options for this profitable and cash generative part of the Group, including a possible sale".

"Over the past decade, WH Smith has become a focused global travel retailer," the statement said.

"The Group's Travel business has over 1,200 stores across 32 countries, and three-quarters of the Group's revenue and 85% of its trading profit comes from the Travel business.

"There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate."