“This is a brutal but necessary reset for a business that was trapped by leases signed in a different retail era.” That’s how David Mercer, retail analyst at Mercer Capital, described the court-approved restructuring that will see up to 150 WHSmith High Street stores disappear from British towns.
The deal, granted approval by the High Court on Monday, slashes rent on most of the remaining 500-odd sites. It’s a lifeline for the stationery-and-magazines giant — but it comes at a cost. Hundreds of jobs hang in the balance, and the UK’s already-battered High Street landscape takes another hit.
So what exactly happened here? And what does it mean for shoppers, landlords, and the broader economy?
The Rescue Deal: Rent Cuts and a Shrinking Footprint
The restructuring — formally a Company Voluntary Arrangement (CVA) — allows WHSmith to walk away from roughly 150 unprofitable stores. For the ones it keeps, rents will drop by an average of 40% to 50%, according to documents filed with the court. Landlords who balked? They were outvoted by other creditors. That’s the CVA mechanism: once 75% of creditors (by value) approve, the rest are forced to go along.
WHSmith had been bleeding cash in its High Street division. Foot traffic declined 15% year-on-year in 2024, while the travel-focused arm (airports, train stations) kept humming. The contrast is stark. The company’s travel stores now generate over 70% of group revenue, leaving the traditional High Street shops as a drag on margins.
“This deal doesn’t fix the underlying problem — it buys time,” says Dr. Eleanor Graves, professor of retail economics at the University of Reading. “WHSmith still has to compete with supermarkets selling cheaper stationery, and with online delivery killing magazine sales. Rent relief helps, but it’s not a growth strategy.”
Landlords, meanwhile, are left holding the bag. Many are small pension funds or private investors. Steep rent cuts mean lower income — and for some, it may push their own finances toward the brink. The BBC reported that several landlords opposed the plan, arguing it unfairly favoured WHSmith’s shareholders over property owners.
Why WHSmith is Shrinking — and Why It Matters
WHSmith has been a fixture on British High Streets since 1792. That’s over 230 years. But tradition doesn’t pay the bills. The company’s core products — newspapers, magazines, books, stationery — have been hammered by digital disruption. Magazine sales dropped 30% between 2019 and 2024, per the Periodical Publishers Association. Stationery faces relentless pressure from Amazon and discounters like B&M.
Meanwhile, costs have marched higher. Business rates, minimum wage increases, and energy bills all piled on. The store estate was too big. Way too big. The CVA is essentially a controlled implosion: close the worst performers, shrink the rest, and hope the travel arm can carry the parent.
This story isn’t unique to WHSmith. The UK has lost over 30,000 retail stores since 2018, according to the Centre for Retail Research. It’s a structural shift, not a cyclical one. And it’s hitting middle-of-the-road generalists hardest — think Debenhams, Wilko, and now WHSmith.
In a similar vein, small independent businesses are feeling the squeeze too. Comedian Romesh Ranganathan recently spoke out about his own bakery’s closure, calling it “gutted” and a warning for UK small businesses. You can read more in our coverage of Romesh Ranganathan ‘Gutted’ Over Bakery Closure – A Warning for UK Small Business. The pressures — rent, rates, footfall — are the same, whether you’re a 150-store chain or a single artisan shop.
What This Means for the UK High Street
The WHSmith closures will leave holes in town centres. Some of those stores are anchor tenants — the kind that pull in foot traffic for surrounding shops. When they go, adjacent cafés, phone repair shops, and clothes stores suffer too. It’s a domino effect.
Local councils are already scrambling. Many town centres have vacancy rates above 15%. Adding another 150 empty units — each averaging about 3,000 square feet — will depress rents for neighbouring properties, reduce rateable values, and shrink the tax base. That’s less money for local services like libraries and rubbish collection.
On the flip side, some landlords see an opportunity. If WHSmith vacates, a prime location could be redeveloped into residential or leisure space. The UK government’s permitted development rights make it easier to convert retail to housing. “A WHSmith closure can be a chance to bring people back into town centres — as residents, not just shoppers,” says James Harrington, partner at property consultancy Harrington & Co. “But the transition takes years, and not every town has the demand.”
For workers, it’s more immediate pain. WHSmith employs around 7,000 people in its High Street division. The company hasn’t confirmed exact job losses, but a spokesperson said they’ll “seek to redeploy staff where possible.” Realistically, many will be made redundant. The Reuters report notes that consultation with unions is ongoing, but the mood is grim.
Looking Ahead: A Smaller, Travel-First WHSmith
So where does WHSmith go from here? All signs point to a company that’s betting its future on airports, train stations, and hospitals. Growth in travel retail has been strong — up 12% last year — driven by passengers snapping up snacks, books, and last-minute gifts. Margins are better, too.
But that’s a risky bet. Travel hubs are vulnerable to disruptions: a new pandemic, a fuel crisis, a terrorist attack. If passenger numbers drop, the travel business takes a direct hit. Diversification cuts both ways.
For now, the rescue deal keeps WHSmith alive. But it’s a shrunk-down version. The company will operate around 350 High Street shops after the closures — down from over 500 a decade ago. Analysts expect further rationalisation in the next two to three years.
“WHSmith is heading toward being a pure travel retailer,” predicts David Mercer. “The High Street name will linger, but the heart of the business will be in terminals. That’s the only way to survive.”
For the UK High Street, the message is sobering: even a 232-year-old institution can’t count on loyalty alone. The winds of retail change are fierce. And no amount of rent cuts can stop the tide of digital disruption.
Frequently Asked Questions
How many WHSmith stores will close?
Up to 150 High Street stores are set to close under the rescue deal approved by the court. The company will keep around 350 High Street stores after the closures, plus its travel outlets.
Will workers lose their jobs?
WHSmith has not given a specific figure, but with up to 150 stores closing, hundreds of job losses are expected. The company says it will try to redeploy staff where possible, but redundancies are likely.
What happens to rent on the remaining stores?
For the stores that stay open, rents will be cut by an average of 40% to 50%. The cut was approved by creditors through a Company Voluntary Arrangement (CVA). Landlords who opposed the plan are still bound by the decision.
