Carl Cowling, CEO of WH Smith Group, has resigned following an independent Deloitte review, which cited, among other reasons, inconsistent accounting practices in the company's North America division, the Bookseller reported. He will remain with the company until February 28, 2026. Andrew Harrison, CEO of U.K. Travel for the company, will serve as interim CEO while WH Smith begins a search for a new CEO.
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| Carl Cowling | |
In addition to the problems with the North American division, the review, which was released Tuesday, found "insufficient systems, controls and review procedures for supplier income across commercial and finance functions," along with "weaknesses in the composition of the finance team." The review was commissioned after an accounting blunder lead to millions being wiped from its profits, causing shares to tumble, the Bookseller noted.
Cowling said: "While the issues identified in the Deloitte review arose in our North American division, I recognize the seriousness of this situation and as group CEO feel it is only right that I step down from my position. It has been a privilege to lead WH Smith for the past six years as CEO.
"During this time, we have guided the company through the unprecedented challenges of the pandemic, pioneered our highly successful one-stop shop for travel essentials and completed the divestment of our high street and online businesses. I would like to thank the entire team for their support and I wish them well."
WH Smith chair Annette Court commented: "On behalf of the company and the board, I would like to thank Carl for his significant contribution to WH Smith over the past 11 years. Upon being appointed as group CEO in November 2019, Carl successfully navigated the company through the global pandemic and, more recently, has strategically repositioned the group as a pure-play travel retailer. We wish Carl every success in the future."
Court added that Harrison "will join the board with immediate effect. With the support of an external executive search firm, the board is now committed to appointing the strongest candidate to lead the next phase and guide the group's long-term growth strategy."
Harrison said the immediate priority for WH Smith is "to maintain a relentless focus on operational excellence and execute the remediation plan with discipline. We have a very resilient business and the fundamentals of the group are strong. Working alongside Max Izzard, group CFO, I am confident that we can move forward and position the group for long-term growth and success."
In March, WH Smith sold its 480 high street--or main street--stores to Modella Capital for £76 million (about $99.6 million), saying it would focus on its travel business, particularly its 1,200 stores in airports, hospitals, railroad stations, and elsewhere in 32 countries.