Canadian entrepreneur Doug Putman is in talks to buy the store network of the high-street stalwart, according to The Sun newspaper.
WHSmith confirmed over the weekend that it was in talks to offload its high street network to focus on its more profitable travel arm.
Putman rescued HMV from bankruptcy in 2019 and has previously been linked to purchases of Wilko and The Body Shop. He is competing with both Alteri Investors and Hobbycraft owner Modella Capital, according to reports.
A source close to WHSmith told Retail Week that “a number of potential buyers” are currently interested, with any sale likely to happen in the next couple of months. It is understood that bankers at Greenhill have been appointed to run the sale process.
In its full-year results to August 31, 2024, total travel revenues increased 11% to £1.4bn while high street sales fell 4% to £452m. The company operates 1,200 stores across 32 countries, accounting for 85% of its trading profit.
WHSmith confirmed to the BBC yesterday that post offices within its high street shops will stay in place if a sale happens.
The high street business generated £32m in profit last year. Peel Hunt analysts say that the picture nevertheless looks challenging.
“We suspect that the headwinds the high street chain now faces are as fierce as they have ever been,” they said in a note, adding “National insurance contributions is a real punch in the stomach, but underlying conditions show no sign of improving as footfall continues to fall.”
Putman is among the retail leaders to have publicly criticised chancellor Rachel Reeves, saying it was “more than likely” that no new HMV stores would be opened in 2025.
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