The chief executive of WH Smith has stepped down after accounting failures were blamed for wiping off almost £600m from the company’s market value.
Carl Cowling departed after a review revealed the accounting issues in the North American division that forced the retailer to slash the business’s profit outlook.
The critical financial blunder was discovered in August of 2025, and shares fell by 42% in just one day following the revelation. The plunging value came just months after the high-street business was sold. It has now been rebranded as TGJones.
Rising share prices
Shares in the company went up by over 7% on the day following the announcement of Cowling’s departure, although they were still far from the levels experienced before the sell-off of the well-known high-street brand.
Cowling was chief executive for six years but has been replaced by Andrew Harrison, the business’s chief executive for the UK. This is just an interim appointment until the company finds a permanent replacement.
Accounting importance
The case highlights the importance of businesses having trust in accountants Bath and elsewhere. Companies failing to choose reputable accountants such as //chippendaleandclark.com/accountants-near-me/bath can find themselves in extreme trouble if accounting is not handled properly.
In the case of WH Smith, an independent Deloitte investigation discovered accounting ‘shortcomings’ that led to an overstatement of profits by up to £50m. Finance team weaknesses were discovered, along with limited financial oversight and insufficient review procedures, controls and systems for supplier income within the commercial finance and income teams.
