WH Smith Faces Leadership Crisis Amid Accounting Error

2 months ago

Chloe Malay

"So the CEO Carl Cowing has just resigned and that is following an investigation into the accounting error that was discovered earlier this year and that is an accounting error that had forced the company to cut its profit outlook for North America. So over the summer um if we can remember as far back as that WH Smith has said that it found an overstatement of about30 million in its profits for North America. Um now it's saying that it could be actually as much as 50 million pounds and that is following an independent review by Deote. Um and so the CEO handed his resignation following that probe and also the leadership in North America for the company is also being uh reviewed. Um this has been a massive problem for the company. The shares plunged over 40% when that accounting error was discovered and announced and they've not really recovered and we are seeing even more weakness this morning."

The commentary highlights a significant crisis at WH Smith following major accounting errors that led to a drastic profit overstatement and subsequent CEO resignation. Investors witnessed a more than 40% plunge in shares upon the error's discovery, and further weakness is observed, signaling serious management and operational issues.