The chief executive of WHSmith Carl Cowling has stepped down following an independent review by Deloitte which found accounting errors in the retailer’s North American business.

In its review, the auditor found that the accounts for supplier income stated by the North America division had been exaggerated, leading WHSmith to overstate its profits of the US business by as much as £50 million.

Deloitte also found weaknesses in the composition of the US finance team, as well as insufficient systems, controls and review procedures for supplier income in its commercial and finance teams.

Cowling will step down from his role as chief executive of the group and as director of the board with immediate effect. He will remain employed by WHSmith until the end of February 2026 to ensure a smooth handover.

WHSmith has begun the formal search for a new chief executive who will oversee and implement a remediation plan as well as lead the company through the next phase of its business strategy.

Andrew Harrison, chief executive of the group’s UK business will cover the role on an interim basis.

He joined the retailer in 2021 from Manchester Airports Group where he held various roles over 15 years, including commercial director.

Harrison has also held roles at Stansted airport and Marks & Spencer, where he worked for over a decade.

Cowling has held the role of group chief executive since November 2019 and joined WHSmith in 2014.

Commenting on the news Annette Court, chair at WHSmith apologised for the accounting error and said that the firm recognises the importance of strengthening controls, governance and reporting across the group.

“Our priority now is to rebuild trust and credibility and to improve the performance and profitability of our North America division,” she added. “We are confident that the actions we have taken and will continue to implement over the months ahead will ensure a strong foundation for the business going forward.”

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