A two-way shootout for WH Smith’s high street chain will take place this spring as the 233-year-old retailer’s brand prepares to disappear from towns across Britain.
Sky News has learnt that Alteri and Modella Capital, both of which specialise in buying troubled retailers, are now the only two remaining parties in talks with WH Smith and its advisers about a potential deal.
Doug Putman, the owner of HMV and widely tipped as a logical bidder for the chain, is no longer in talks with bankers at Greenhill, although he could yet try to pitch a new offer before the auction concludes, according to insiders.
Alteri, which owns Bensons for Beds and had a disastrous spell in control of Missguided, the fashion brand, and Modella, which recently bought The Original Factory Shop and also owns Hobbycraft, would be expected to conduct major surgery on WH Smith’s high street business if they took control.
A definitive deal could be announced at the time of WH Smith’s interim results in April.
Sky News revealed in January that WH Smith’s London-listed holding company was looking to offload the high street business, which comprises more than 500 shops.
If completed, the deal would leave WH Smith as a company focused on its more lucrative travel retail operation in airports, railway stations and hospitals, which comprises about 1,200 stores globally.
A sale of its high street arm would mark a watershed moment for the UK high street, which first saw the appearance of the name in 1792.
The business, which specialises in selling items such as greeting cards and stationery, employs about 5,000 people across the country.
A WH Smith spokesman declined to comment.