Embattled travel and retail group WH Smith has launched a formal search for its next chairman, as it battles to regain investor confidence following a devastating accounting scandal. Sky News has learned the London-listed firm is working with headhunting firm Russell Reynolds Associates to identify suitable candidates.
Succession Plan in Motion for Troubled Retailer
The process is expected to initially focus on appointing two new non-executive directors. One of these appointees is intended to be a candidate capable of taking over from the current chair, Annette Court, within approximately 18 months. While Ms Court is not anticipated to step down during this calendar year, sources suggest she may depart in 2027.
Ms Court has chaired WH Smith for just three years, a tenure overshadowed by recent turmoil. The company has specified it wants a new board member with direct experience in the North American travel retail market, a key growth region for the business.
The search comes after a catastrophic period for WH Smith, which was plunged into crisis late last year when significant accounting errors emerged. The revelation sent its share price into a spiral, eroding nearly half of its market value over the past twelve months. Shares closed on Friday at 643.5p, valuing the company at around £810 million.
Regulatory Scrutiny and Leadership Vacuum
The fallout from the accounting issues continues to intensify. The Financial Conduct Authority (FCA) has now opened a formal investigation into the matter. In response, the company is expected to claw back bonus awards from former senior executives implicated in the crisis.
WH Smith is also currently operating without a permanent chief executive. Carl Cowling stepped down from the role once the scale of the accounting problems became clear. The company has installed Andrew Harrison, the former head of its UK travel division, as interim boss.
A source close to the company emphasised that Ms Court has been deeply involved in efforts to address the firm's troubles in recent months. They described the board's actions as "focused on effective succession planning rather than an active search for a new chair."
Shareholder Pressure and Activist Interest
The board is braced for a difficult annual meeting early next month, where shareholders are poised to demand answers regarding the accounting crisis and the company's recovery plan. The tumultuous year has also seen WH Smith attract attention from activist investors.
Palliser Capital acquired a stake in the business last summer, adding further pressure on the leadership. The company's recent history has included the sale of its historic high street chain to specialist retail investor Modella Capital, marking a significant retreat from its traditional roots.
Annette Court, who also sits on the board of accounting software group Sage, was recently appointed senior independent director of FTSE-100 clothing retailer Next. A spokesman for WH Smith declined to comment on the chairman search process.
