Shares of WHSmith PLC (LON: SMWH) are trading nearly 5% higher on Monday after the books and stationery retailer has continued to implement its cost-cutting measures.
Just a few days after the firm announced plans to slash 1,500 jobs, or 11% of the total workforce, WHSmith has reportedly contacted its landlords to demand rent cuts.
According to the Sunday Times, the High Street retailer contracted property agency Gerald Eve to negotiate deals with property owners. Accordingly, WHSmith threatened landlords with delayed payments through the Company Voluntary Arrangement (CVA) if new terms are not agreed.
“We now need to take further action to reduce costs across our businesses. I regret that this will have an impact on a significant number of colleagues whose roles will be affected by these necessary actions,” Group chief executive Carl Cowling said last week.
WHSmith saw its July revenue plunge 57% compared to a year ago. WHSmith share price gained around 5% as investors hope that cost-cutting measures will help the retailer survive this challenging period.