WH Smiths wrangle with John Menzies on distribution could force 12,000 newsagents to close and be dangerous for printers, warns Menzies.


It said the shop closures could result from recent problems around contracts for distribution.


John Menzies went to the High Court last week alleging its rival has been inducing other publishers and distributors to breach exclusive distribution agreements with us, said Iain Callaghan, managing director of its wholesale division.


It ensures the widest distribution of the printed word throughout the UK. WH Smiths action could result in the reduction in outlets of between 8,000 and 12,000.


This could lead to fewer titles on the shelves and fewer print runs, which would hit printers profits, he warned.


WH Smith, with 28 days to respond, denied the claims and said the case would test the ground on the principle of exclusivity.


The action comes a few days after Daily Mail and General Trust said it was dropping WH Smith as its main distributor in six months.


The contract is worth 100m and 200m newspapers a year, said Mike Newman, circulation director at Associated News, part of DMGT.


WH Smith aimed to set up a distribution service to major retailers for magazines only, which would hit newspaper distribution, he said.


Newman insisted DMGT would use alternative wholesalers to fulfil similar distribution and did not see printers badly affected.


WH Smith, which corners up to 20% of the magazine market and 3% of that for newspapers, said it was reviewing its position.


Story by Jez Abbott