WHSmith's 500 high street stores face an uncertain future as multiple buyers, including HMV owner Doug Putman and private equity firms, consider taking control of the retail chain.

The historic British retailer confirmed it is exploring options for its high street division as it seeks to focus on its more profitable travel business, which now accounts for 85 per cent of trading profit through its 1,200 stores across 32 countries.

According to The Telegraph, Canadian entrepreneur Putman, who successfully rescued HMV from bankruptcy in 2019, has joined private equity groups Hilco and Alteri in expressing interest in the potential acquisition. HMV's recent success, with sales rising by 18 per cent to £177 million and pre-tax profits doubling to £5.2 million, could make Putman an attractive buyer.

However, the prospect of a private equity takeover has sparked concerns for the division's 5,000 workers. Paddy Lillis, general secretary of the Union of Shop, Distributive and Allied Workers (USDAW), said: "Staff at WHSmith are yet again plunged into a period of uncertainty and they are very worried about their futures. This news further highlights the urgent need for a robust industrial strategy for the high street."

Peel Hunt analyst Jonathan Pritchard suggested that while job cuts might be limited, store closures could be likely under new ownership: "It is hardly as though this is a fat business, with lots of inefficient processes and store staff dossing about. Quite the opposite. Store closures could be material in somebody else's hands."

The sale, which could fetch between £100million and £130million according to analysts, may also involve negotiations over the WHSmith brand name, as the company plans to retain it for its travel business. Sources suggest a deal could be reached within three months.

The news comes amid broader retail sector challenges, with WHSmith already planning to close 17 high street shops during 2025, and the Centre for Retail Research predicting around 17,350 retail site closures across the UK this year.

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