WHSmith in ‘strong position’ as HMV owner and Modella named as suitors for High Street arm
Just days after announcing plans to close at least 17 stores, WHSmith has confirmed it is looking at options for its High Street arm “including a possible sale” – and HMV owner Doug Putman and former Paperchase investor Modella Capital are rumoured to be among the possible bidders.
While confirming the 233-year-old retailer now sees the Travel side as its “core business”, CEO Carl Cowling also said in a trading update today, 29 January, that the group is in a “strong position” adding: “We are confident of another year of good growth in 2025”.

The High Street arm sale story broke at the weekend when Sky News ran a story on Saturday, 25 January, saying the retailer, where greeting cards and gift wrap make up a significant chunk of sales, was “in secret talks to sell its entire High Street business”.
The news outlet revealed the listed retail group, which has a market capitalisation of almost £1.5billion, has been in negotiations with a number of prospective buyers for several weeks.
Confirmation was expected on Monday but the response to the press speculation came just a couple of hours after Sky’s story appeared: “WHSmith confirms that it is exploring potential strategic options for this profitable and cash-generative part of the group, including a possible sale.
“Over the past decade, WHSmith has become a focused global travel retailer. 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.”
The sale revelation was followed this morning with a trading update where WHS said it had made a good start to its new financial year with group revenue up 4% in the 21 weeks to Saturday, with travel business revenue increasing by 6% on a like-for-like basis while High Street stores fell by 3%.
The statement said the fall was “in line with our expectations”, and added: “We exited the Christmas trading period with a clean stock position and we are on track to deliver our targeted full-year cost savings of £11m.”
Carl commented: “The group has had a good start to the financial year, and we continue to see strong momentum across our core Travel business.
“Our UK Travel business has delivered another excellent performance across all channels, as we continue to make good progress with the rollout of our one-stop-shop for travel essentials format.

“In North America, we have seen a notable shift in like-for-like revenue growth, up 3%, as a result of the actions we have taken to enhance our ranges and introduce new categories. We are also delighted to announce that we have won eight stores at Orlando airport, further to our announcement in November and, more recently, a further four stores at Portland airport. We now have a new store pipeline of circa 60 stores in North America.
“The group is in a strong position and, while there is some economic uncertainty, we are confident of another year of good growth in 2025.”
The High Street arm has around 5,000 staff across more than 500 stores, of which around 200 also have a Post Office counter staffed by WHS employees, and there are dozens of Toys R Us shop-in-shops following the 2024 deal to host concessions reviving the UK bricks-and-mortar presence of the brand that went bust in 2018.
It is currently part of the same international group as the faster-growing, more-profitable travel retail business which operates around 1,200 outlets across airports, train stations and hospitals, half of which are in the UK.
The division recorded flat operating profit of £32million last year and still largely sells greeting cards, books and stationery, while the higher margin travel arm has a wider offer of food and drink along with technology products and is growing quickly in the US market – the company founded the category by opening the world’s first travel retail store at London’s Euston Station in 1848.
Following on from the 2023 announcement by the chief executive that the retailer was no longer pursuing growth in the UK High Street sector, last week it was announced the ongoing restructuring strategy would see 17 stores – later expanded to 19 – closed by May as it looks to streamline operations and shift its footprint to more profitable locations.

The first closures happened on 18 January when the Bournemouth and Luton branches shut, March followed on Saturday, Basingstoke is due this Saturday, 1 February, with Long Eaton, Newtown, Bournemouth Winton and Rhyl on 15 February, followed by Bolton, Accrington, Halstead, Halesowen, Diss, Newport, Haverhill, Woolwich, Stockton, Oldham, and Orpington.
On Monday Sky News reported that Modella Capital, which bought Hobbycraft last year and was previously involved in Paperchase – where WHS itself had a stake in the 1980s and 90s – is among a handful of parties to have held discussions with WHSmith and its advisors Greenhill Investment Boutique.
And The Sun revealed Canadian entrepreneur Doug Putman, who rescued HMV from bankruptcy in 2019, is also interested, along with restructuring firms Alteri and Hilco.
After a year in which the company’s share price had declined by around 5%, closing at £11.48 on Friday, the news saw a rise to £11.60 when the stock markets reopened on Monday and it has continued climbing, hitting £12.68 at close last night.
However, the issue of branding has also been raised as WHSmith has been a staple name on the British High Street since it was coined by William Henry Smith in 1828 when he took over the family business founded by his parents Anna and Henry Walton Smith in 1792.
It’s understood the company plans to retain the WHSmith name for the travel business, so could strike a deal which will not include the use of the brand on the High Street, or there could be a licensing process, which is expected to be part of the negotiations with prospective buyers.