Ted Baker in­vestors hope for good news

Yorkshire Post - - BUSINESS -

IN­VESTORS in Ted Baker will be hop­ing for some rare pos­i­tive news to cheer about in its trad­ing up­date this week af­ter a dire year for the lux­ury fash­ion brand.

Shares in the UK cloth­ing re­tailer have slid by more than 75 per cent since Jan­uary in a year which has seen it post three profit warn­ings.

Michael Hew­son, chief mar­ket an­a­lyst at CMC Mar­kets UK, said the com­pany had “lurched from one cri­sis to an­other” over the past two years.

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

Mr Kelvin had taken al­ready taken a step back from ac­tiv­i­ties at the busi­ness in De­cem­ber 2018 af­ter al­le­ga­tions of mis­con­duct in­volv­ing “forced hugs” and ear-kiss­ing. He has de­nied any wrong­do­ing.

Last week, the com­pany’s shares plunged fur­ther af­ter bosses un­cov­ered that its in­ven­tory had been over­stated by be­tween £20m and £25m.

Ted Baker said it had brought in lawyers and in­de­pen­dent ac­counts to as­sess the is­sue but in­sisted that it would have no cash im­pact and re­lated only to pre­vi­ous years.

The com­pany’s trad­ing per­for­mance will be the fo­cus of scru­tiny on Wed­nes­day, when the firm up­dates in­vestors.

SHOW­CAS­ING NUM­BERS: Re­tailer Ted Baker’s trad­ing per­for­mance will be in the spot­light when it up­dates in­vestors on Wed­nes­day.

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