Every WH Smith store 'under threat' of closure in Aberdeen and Aberdeenshire
Thousands of jobs across Scotland's WH Smith stores are at risk after the popular retailer confirmed discussions were behind held over the sale of its high street empire.
The retailer currently employs more than 5,000 people and owns more than 700 stores across the UK, with five of them in the north-east.
The 233-year-old business revealed that it was holding talks with private equity firms to let it focus on its travel retail business which operate from airport, train stations and hospitals.
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Potential suitors include Hilco, Hobbycraft owners Modella Capital and Alteri who are looking to takeover the business after the process was launched late last year.
If the high street-arm of the business is successfully sold it could result in store closures and job cuts to help shore up the business and reduce overheads, writes the Scottish Daily Express.
Peel Hunt analyst Jonathan Pritchard told The Herald: "It is hardly as though this is a fat business, with lots of inefficient processes and store staff dossing about. Quite the opposite.
"Store closures could be material in somebody else’s hands, but WH Smith itself, clearly, has a good line of sight on how to get the most out of the chain, and it is unlikely that anyone else has the silver bullet to regalvanise profitability here."
Meanwhile, the company announced plans to close 17 stores this year as the high street side of its business struggled amid pressure from online competition and shoppers switching to cheaper options for stationary and greeting cards. Its overall performance saw a decline of 3 per cent as its travel retail business grew by 6%.
Paddy Lillis, general secretary of Usdaw (the Union of Shop, Distributive and Allied Workers), said: "Staff at WH Smith are yet again plunged into a period of uncertainty and they are very worried about their futures. This news further highlights the urgent need for a robust industrial strategy for the high street.
"We urge the current owners and any buyer to fully engage with the staff to protect their jobs and help this longstanding iconic brand to thrive in the future."
The paper reports that the business plans to retain the name for its travel business that could see a licensing deal struck or the sale of the units with the buyer unable to use the brands name and reputation.
It has been predicted to fetch over £100million if the business is sold by a variety of analysts. Currently, it has around 60 stores in Scotland the majority of them would be under threat with a few in motorways, airports, and train stations.
All the WH Smith stores in Scotland under threat
Glasgow -Argyle Street, Sauchiehall Street, Queen Elizabeth University Hospital, Killermont Street, Gartnavel Hospital, Royal Infirmary, Braehead
Aberdeen - St George Street, Bon Accord Shopping Centre, Aberdeen Royal Infirmary
Edinburgh - Gyles Avenue, Lady Road, Fort Kinnaird Retail Park, Royal Edinburgh Infirmary, Cameron Toll Shopping Centre
Larbert
Renfrewshire
East Kilbride
Kirkintilloch
Paisley
Fort William
Perth
Elgin
Inverness - High Street, Academy Street
Peterhead
Banchory
Montrose
Arbroath
Dundee - Murraygate, Ninewells Hospital
St Andrews
Cupar
Glenrothes
Kinross
Dunfermline
Stirling - Thistle Shopping Centre
Largs
Troon
Ayr
Stranraer
Dumfries
Gretna Green
Biggar
Kelso
Galashiel
Dalkieth
Livingston
Bathgate
Airdrie - two stores
Hamilton - two stores
Monklands
Kilmarnock
Kirkcaldy - two stores
Wishaw