The high street is bleeding again. Sources confirm that a rescue deal for the ailing retailer formerly known as WHSmith has been approved, but it comes with a brutal condition: up to 150 stores will shutter. The news hit the wires this afternoon, sending shivers through already rattled retail investors. The approved deal, which sees the company's high street arm carved out and sold to a private equity consortium, leaves thousands of jobs hanging in the balance.
For a brand that once stood as a pillar of British shopping centres, the slide has been merciless. WHSmith's management, chasing elusive profits in airport lounges and railway stations, neglected the high street stores. The pandemic delivered a blow from which they never recovered. Now, the lifeline thrown by the rescue deal has a price tag measured in jobs. A source close to the negotiations, who spoke on condition of anonymity for fear of reprisal, put the figure bluntly: “They are looking at between 100 and 150 stores. The private equity boys are not here to save WHSmith. They are here to carve it up.”
Uncovered documents from the company's internal restructuring plan lay it bare. The deal consolidates the profitable travel outlets while the high street locations are deemed “non-core.” The document reads: “The retail estate will be reduced substantially to align with the new business model.” In plain English, that means up to 150 stores closed. At an average of 15 staff per store, that is 2,250 jobs gone. Some estimates put it higher.
The rescue package is being hailed by company insiders as a necessary evil. “It saves the brand,” a spokesman said. But the question on everyone's lips is: which brand? The WHSmith that remains will be a lean, travel-focused operation, a far cry from the chain that once dotted every high street. For the towns losing their branch, it is another nail in the coffin of local retail. The loss of a WHSmith is not just a shop closing. It is the removal of a reliable newsagent, a post office, a place to send parcels. For the elderly, it is a lifeline.
Critics are already sharpening their knives. The deal stinks of asset stripping, pure and simple. The private equity consortium, which sources confirm is backed by a major US fund, will cherry-pick the profitable sites and discard the rest. The high street stores, many of which have been loss-making for years, become toxic assets. The new owners have no incentive to keep them open. The official line is “strategic review,” but the outcome is clear: for up to 150 towns, the lights will go out.
The government, still twiddling its thumbs over the retail crisis, has offered no comment. The local communities that depend on these stores will be left to lobby for scraps. The irony is not lost: the same high street that was being celebrated as the heart of the community during the pandemic is now being abandoned by the feet on the ground.
I have seen this story before. The same pattern played out with Maplin, with Toys “R” Us, with countless others. Private equity rides in, takes the assets, and leaves the shell. The only difference this time is the scale. 150 stores is a massacre. The ripples will hit landlords, supply chains, and the already fragile footfall of nearby businesses.
Unanswered questions remain. The number of redundancies is not finalised, but the writing is on the wall. The deal is done, the ink is drying, and the high street is gearing up for another round of closures. Keep an eye on your local branch. If it is on the list, say goodbye.
