Wh Smith's name will disappear from British main streets after more than 230 years of action, because the retailer is planning to sell the chain – without rights to his name.
In January it was revealed that the company was in conversation for weeks to sell its wrestling High Street stores, so that it could concentrate on its more lucrative travel arm – the shops in train stations and airports.
But if Chief Executive Carl Cowling looks to pledge the 500 High Street branches of the stationer – with almost 200 of their home to post post offices – he is understood that it is not practical to have two separate companies with the same name.
The sale would probably see the name WH Smith disappear from the British High Street where it has been a constant for 233 years, since the first store in 1792 in the center of London was opened. The first offers of buyers were made last week.
Investment companies Alteri and Modella Capital, who specialize in buying and re -processing wrestling retailers, have shown interest in the sale, so that the High Street stores would act under a different name, as reported by The Times.
The Canadian Tycoon Doug Putman, who saved the HMV music store, and Hilco, who previously owned Homebase, have also shown interest as buyers.
Potential buyers in the auction run by Greenhill Investment Bank will be set a time frame in which they should give up the iconic name of the stores.
In the past ten years, the sale of the company has fallen from £ 684 million to £ 452 million. The company of the company – which consists of around 1,200 stores worldwide – generates 85 percent of its profit.
Wh Smith's name will disappear from British main streets after more than 230 years of action, because the retailer is planning to sell the chain – without rights to his name. Shown: file photo
And with each of the High Street stores with an average of only two years of lease, there are ensure that a new owner can quickly close stores that do not aim.
Retail expert Richard Hyman, from Aria Intelligent Solutions Consultancy, said that the chain offers many different products and without a legendary brand name to unite that offer, it can be difficult for a new owner to give the High Street stores a strong brand identity.
The new owner will also have to fight for increases for the minimum wage and the contributions of the national insurance of employers, announced last year in the budget – which will increase the costs of the stationer by no less than £ 20 million.
Concern that the retailer tries to distance themselves from the sale and questions about whether the remaining stores are safe were increased after this latest step.
Although there is an external chance that the new owner can close a deal to keep the name, it is unlikely, it is understood.
A source close to Wh Smith said that the chain was attractive for buyers because of its strength in several types of product and its identity as a kind of hub in British main streets.
The retailer would currently have a total market value of almost £ 1.5 billion.
The profit of stores in stations, airport and hospitals around the world rose by 15 percent to £ 189 million for the year ending on August 31, with a fifth of this growth from British stores.
Wh Smith started as a news vendor, with his first store opened by Henry Walton Smith and his wife Anna in London in Little Grosvenor Street, near Bond Street (photo, a WH Smith store from 1918)
In the UK there are 14 new travel stores open in the last financial year – and between three and eight will open in the coming year.
Wh Smith started as a news seller, with his first store opened by Henry Walton Smith and his wife Anna in Little Grosvenor Street in London, near Bond Street.
The company's first travel store was opened at Euston Station in London in 1848.
Also the possession of Bookshop Waterstones and Music Store our prize in one phase, and seeing the glory days in the 1970s and 1980s.
But while the High Street is struggling and customers turn to supermarkets, discount stores and online shopping, Smith has experienced problems to keep the business world.
The company responded by reducing investments in its High Street stores.
Globaldata Retail Research Director Patrick O'Brien said that this had influenced the health of the brand – but that the nation was still fond of it.
There is one famous British precedent for the licenses of the same name at two separate companies – with which WH Smith has decided not to go with this last step.
Engineering Group Rolls-Royce separated ways from Rolls-Royce Cars in 1973. The car company is now owned by BMW-but is later learning the Rolls-Royce name and the logo of the Jet Engine Making Business.
