Overview
McTear Williams & Wood were appointed to support the owners of The Stow Partnership LLP t/a WH Smith Local, a franchise in Dereham, Norfolk in June 2018 following sustained trading difficulties that made the business no longer viable. Despite significant personal investment and commitment from the owners, challenging market conditions and limited footfall ultimately led to the decision to close the store and place the company into a creditors’ voluntary liquidation (CVL).
Service provided: Creditors’ voluntary liquidation
Sector: Retail
Location: Dereham, Norfolk
Team members involved: Tony Harrison
The background
The WHSmith Local store opened in Dereham in November 2017 and was owned and operated by a family business, who relocated from Kent to Norfolk specifically to establish the franchise. The directors worked full-time in the business and invested heavily to get the store up and running, with the aim of creating a sustainable presence on the local high street.
However, from an early stage, the business faced a combination of sector-wide pressures and local trading challenges. Competition from nearby retailers, pricing pressures common across the WHSmith brand and changing consumer habits all contributed to lower-than-expected sales.
The challenges
Despite best efforts to increase local engagement and footfall, the business struggled to generate sufficient turnover to cover its ongoing costs. By spring 2018, the directors were facing increasing financial pressure and recognised that without a significant and rapid improvement in trading conditions, the business would be unable to continue.
External factors compounded the situation. Research at the time suggested that nearly one in twenty high street stores in Norfolk were at risk of closure within four years, reflecting wider structural challenges facing bricks-and-mortar retail. The directors also faced the emotional strain of having committed their family, time and personal finances to the venture.
The solution
After careful consideration of their options, the directors sought advice from McTear Williams & Wood. Following a review of the company’s financial position and prospects, it became clear that continued trading was no longer viable and that an orderly closure would be the most appropriate course of action.
McTear Williams & Wood were appointed to place the company into a creditors’ voluntary liquidation, ensuring that the process was handled professionally and transparently, with the interests of creditors properly considered and the directors supported throughout.
The outcome
The store ceased trading at the end of May 2018, less than a year after opening. While the closure was a difficult decision for the family, the liquidation process allowed the business to be wound down in an orderly manner and enabled the directors to draw a clear line under the venture.
Local figures, including the town’s mayor, publicly acknowledged the loss to the high street and the efforts made by the family to make the business work, underlining that the closure was driven by wider economic and retail challenges rather than a lack of commitment.
Practitioner insight
Tony Harrison, Director at McTear Williams & Wood, commented:
“The partners invested heavily in the business and had ambitious plans, but ultimately, they were unable to generate sufficient sales to make the operation sustainable. In these situations, making the decision to close can be extremely difficult, but taking early advice allows the process to be managed in a controlled and responsible way.”
How McTear Williams & Wood can help
This case highlights the pressures faced by independent retailers and franchise owners operating on the UK high street. McTear Williams & Wood regularly support directors and business owners in the retail sector, providing clear, practical advice on turnaround options, orderly closures
and director responsibilities.
If your business is facing similar challenges, our team offers confidential, no-obligation advice to help you understand your options and plan the next steps.