WHSmith CEO Carl Cowling has resigned from his position after an independent review by Deloitte uncovered significant accounting errors in the company’s North American operations. The review revealed that profits in the US division were overstated by as much as £50 million due to weaknesses in the finance team, systems, and controls.
Key Takeaways
- WHSmith CEO Carl Cowling resigns with immediate effect.
- An accounting review found US profits were overstated by up to £50 million.
- Andrew Harrison, CEO of WHSmith UK, appointed interim Group CEO.
- Cowling will remain employed by WHSmith until February 28, 2026.
Resignation And Accounting Review
Carl Cowling, who has led WHSmith as Group CEO since November 2019, has stepped down following the findings of an independent review conducted by Deloitte. The review identified "shortcomings" within the company’s US arm, leading to an overstatement of profits by up to £50 million. Contributing factors cited include weaknesses in the finance team’s composition and insufficient systems, controls, and review procedures for supplier income.
Cowling stated that while the issues originated in the North American division, he recognised the seriousness of the situation and felt it was appropriate to step down as Group CEO. He expressed his privilege in leading WHSmith for the past six years, highlighting the company’s navigation through the pandemic, the pioneering of its travel essentials offering, and the divestment of its high street and online businesses.
Interim Leadership And Future
WHSmith has appointed Andrew Harrison, the current CEO of the group’s UK division, as the interim Group CEO. The company has initiated a formal search for a permanent successor to Carl Cowling. Cowling will continue to be employed by WHSmith until February 28, 2026, during which time he will likely assist with the transition.
Annette Court, Chair of WHSmith, thanked Carl Cowling for his significant contributions over his 11-year tenure, acknowledging his leadership through the global pandemic and his strategic repositioning of the group as a pure-play travel retailer. The company wishes him success in his future endeavours.
Sources
- WHSmith CEO resigns after six years, Retail Gazette.
- WH Smith chief executive steps down following accounting review, Retail Bulletin.
- Explainer: What are the implications of the WHSmith’s US accounting blunder?, Retail Week.
