Fashion chain admits to £25 million inventory blunder

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Bosses at Ted Baker have admitted the fashion brand’s inventory has been overstated by between £20 million and £25 million.

The board has appointed lawyers from Freshfields Bruckhaus Deringer to carry out a review into how the mistake happened and will report back to the company.

Ted Baker had already been struggling after reporting a £23 million half-year loss, compared with the £24.5 million pre-tax profit reported a year earlier. It had taken a £600,000 hit from its concessions at House of Fraser when the store went into administration and also lost out when Debenhams suffered the same fate.

Ted Baker said: “The Board has appointed Freshfields Bruckhaus Deringer LLP, and will be appointing independent accountants, to undertake a comprehensive review of this issue, and they will report to a sub-committee, chaired by independent director Sharon Baylay. All costs and fees associated with completing the independent review will be expensed in the period incurred and clearly identified as such.

“Ted Baker is committed to ensuring the independent review is completed in an efficient and transparent manner and will update the market as appropriate.  Whilst the review is ongoing, the Company will not comment further.”

Ted Baker, whose first store opened in Glasgow, was hit by scandal in March when its founder and CEO Ray Kelvin resigned over claims of inappropriate ‘hugging’ of staff.



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