Boardroom shake-up after profit alert adds to crisis at Ted Baker

TROUBLED retailer Ted Baker, which has one store in Northern Ireland, has seen its crisis deepen after warning over profits once again and revealing the immediate departure of its chief executive and chairman.

Shares in the group plummeted to 16-year lows after it revealed chief executive Lindsay Page quit and bemoaned the “most challenging” 12 months in its history.

The company has a store in Belfast’s Victoria Square.

The fashion firm — whose stock fell more than another 30% at one stage — has now seen more than three-quarters of its stock market value wiped off since January, sparking speculation over opportunistic takeover bids. Mr Page, who only took over from Ted Baker founder Ray Kelvin after he quit in March, has been replaced on an interim basis by finance director Rachel Osborne.

Ted Baker has also kicked off the search for a new chairman after David Bernstein stepped down.

Sharon Baylay has been hired as acting chair.

The resignations were announced as Ted Baker scrapped its shareholder dividend payout and said it is now expecting annual pre-tax profits of between £5m and £10m after worse-than-expected trading in November and over Black Friday.

This compares with pre-tax profits of £50.9m the previous year.

Its trading troubles were laid bare as figures revealed a 5.5% drop in retail sales with currency effects stripped out for the 17 weeks to December 7. Ted Baker said: “The last 12 months has undoubtedly been the most challenging in our history.”

It confirmed it has hired consultants Alix Partners to review the group’s operational efficiency, costs and business model as part of an urgent recovery plan.

The company already began a review of its assets in October.

It sees Ted Baker’s woes worsen after bosses last week revealed they had uncovered that the group’s inventory had been overstated by up to £25m.

Shares have been decimated after a year which has seen it post four profit warnings and lurch from crisis to crisis.

The firm came under significant pressure after founder and chief executive Mr Kelvin resigned in March following allegations of inappropriate behaviour towards staff.