Only two contenders remain in the race to acquire WHSmith’s high street business as the retailer considers withdrawing from town and city centres across the UK.

Alteri, the owner of Bensons for Beds, and Modella Capital, which owns Hobbycraft, are now the final bidders in discussions with WHSmith and its advisers regarding a potential deal.

Doug Putman, the owner of HMV, is no longer involved in negotiations, although the Canadian businessman could still submit an offer before the auction process concludes.

This follows WHSmith’s announcement in January that it was exploring strategic options for its high street division, including a potential sale.

The retailer, which operates around 500 high street stores across the UK, has increasingly shifted its focus to its global travel division, which now accounts for 85% of its trading profit.

A sale could result in WHSmith giving up the rights to its brand name, raising the possibility that the retailer – a presence on British high streets since 1792 – may disappear from town centres altogether.

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