TED BAKER VOWS TO ‘LEARN LESSONS’ OF HUGGING ROW

TED Baker has vowed to ‘learn lessons’ from the scandal that led to the resignation of its chief executive.

As it posted a 26.1pc slump in annual profits to £50.9m, the firm said it was ‘committed to ensuring all employees feel respected and valued’.

The comments came after boss Ray Kelvin, 63, quit following allegations by staff of inappropriate behaviour against him including ‘forced hugging’. Kelvin, who denies wrongdoing, founded Ted Baker in 1988.

After installing former finance boss Lindsay Page, 59, as acting chief executive, the firm said it was forced to slash product prices to keep up with those offered by competitors.

Sales were up 4.4pc to £617.4m – far slower than the 11pc rise the previous year – but Ted Baker said High Street trading had been ‘very difficult’.

Ted Baker said best-sellers last year included its women’s Sandra wool wrap coat which costs £329, with floral dresses and patterned men’s shirts also selling well.

In a statement alongside its annual results, Ted Baker said: ‘The board are committed to ensuring that all employees feel respected and valued.

‘We are determined to learn lessons from what has happened and from what our employees have told us and to ensure that, while the many positive and unique aspects of Ted Baker’s culture are maintained, appropriate changes are made.’

Shares were down 6.4pc, or 109p, to 1601p last night.