The new chief executive of WHSmith, Stephen Clarke, has described the high street retailer's presence as 'almost completely broken', blaming a lack of investment by its former owner for the company's struggles.
Speaking to the Financial Times, Clarke said WHSmith had been left behind by its competitors due to a lack of investment under its previous owner, W H Smith plc. The company has since been acquired by a consortium of investors.
Clarke stated that WHSmith had 'lost its way' and that the retailer's high street presence was 'almost completely broken'. He cited the company's failure to adapt to changing consumer behaviour and the rise of online shopping as key factors in its decline.
The company is now seeking to rally support for a restructuring plan, which aims to rescue the business and restore it to health. The plan is expected to involve significant cost-cutting measures and the closure of underperforming stores.
WHSmith's high street presence is a significant concern for the UK retail industry, which has been hit hard by the pandemic and subsequent economic downturn. The company's struggles are also a blow to the government's efforts to support high street businesses and boost local economies.
The news comes as the UK government is set to publish a long-awaited review of the retail industry, which is expected to recommend measures to support struggling high street businesses.