Ted Baker stocks buoyed by takeover talk
Shares in Ted Baker – the British fashion label with Scottish roots – soared yesterday after reports that the brand’s founder was planning to take it off the stock market with a takeover.
The stock closed up by 13.5 per cent at 951p yesterday.
It followed a report that Ray Kelvin, Ted Baker’s founder and former boss, had considered backing a buy-out of the company that would take it off the London Stock Exchange.
Kelvin, who still owns 35 per cent of the business, was forced to step down earlier this year in the wake of a misconduct scandal.
Current and former employees alleged that he had made inappropriate physical contact with them, enforcing a “hugging” culture at the company.
In the fallout, Kelvin stepped down from his position as chief executive and Ted Baker’s HR procedures were overhauled.
It is now thought that he has made “discreet” enquiries into a possible buy-out by private equity or a consortium of investors that would leave current management in place. Furthermore, it is understood that chief executive Lindsay Page, who took over the running of the business after Kelvin’s departure, would be invited to help run the business.
Recent months have seen tough times for Ted Baker, with shares tumbling in June as it issued a profit warning.
The group blamed the latest trading troubles on “difficult and unpredictable” conditions as well as unseasonable weather in the US and intense discounting across its global markets.