WHSmith has been hacing secret talks to sell its entire high street business with over 5,000 employees.
Sky News has exclusively revealed that the retail group with a market capitalisation of almost £1.5bn has been negotiating with prospective buyers for weeks.
The company could confirm the plan in a statement to the London Stock Exchange as early as next week.
WHSmith’s high street arm contains around 500 stores, the first of which began operating over 230 years ago.
PA
It’s currently part of the same group as WH Smith’s travel retail business, which is faster growing and operated in airports, train stations and hospitals.
There are around 600 travel retail shops in the UK, half of the global number which is about 1,200 locations.
Bankers at Greenhill will be running the sale process for the high street business, with a deal expected in the next few months.
The identities of the buyers are currently unknown.
The identities of the buyers are currently unknown.
The rebranding as a pure-play travel retail company is likely to be welcomed by investors, an analyst revealed this weekend.
WHSmith’s high street division mainly sells books, stationary and greeting cards while the travel stores also sell food, drink and technology products.
The high street division recorded a flat operating profit of £32m last year.
The travel business however accounts for 75% of the company's revenue, and 85% of profits.
The high street division recorded a flat operating profit of £32m last year.
Getty
The shops are growing fast particularly in the US, as well as in hospitals across the UK.
The first WHSmith opened in 1792 by Henry Walton Smith and his wife Anna in Little Grosvenor Street, London.
The first ever travel store was opened in Euston Station in 1848.
Last week it became known that around 15 WHSmith stores would be closed this year.
On Friday, shares in WHSmith closed at 1148p, having declined by about 5% over the last 12 months.
There have been speculations about the future of WHSmith’s high street division for many years amid other similar shops like Debenhams and BHS ceasing to trade from physical stores in the last 15 years.