finance

Fashion retailer names new auditor after books blunder



KPMG has been replaced by BDO as auditor of Ted Baker after the fashion firm’s £25 million inventory blunder.

The retailer, which opened its first shop in Glasgow in 1988, announced today that, following a competitive tender, BDO would take over the role after the AGM on 21 July.

Meanwhile, Ted Baker announced it plans to raise £95 million in a new share offering as it launched ‘Ted’s Formula for Growth’.

KPMG, which has audited Ted Baker’s books since 2001 and was last reappointed in 2012, had agreed not to seek a renewal of its deal.

In December, Ted Baker revealed it had overstated its stock value by £20-25 million. Chief executive Lindsay Page and chairman David Bernstein quit and were followed by senior director Ron Stewart. Law firm Freshfields Bruckhaus Deringer is investigating the blunder.

Scottish EasyJet chair John Barton has since taken over the chairmanship.

Ted Baker said today: “BDO LLP will be appointed auditors of the company and will hold office from the conclusion of the Annual General Meeting until the conclusion of the next general meeting at which accounts are laid before the company. The appointment is subject to approval by shareholders at this Annual General Meeting of the Company, to be held on 21 July 2020.”

Ted’s Formula for Growth will include reducing debt by £71 million raised from the sale of its head office building, and investing £6 million the brands ecommerce platform. The firm issued a profit warning after a poorer than expected Christmas trading period with sales down 5.5% year on year.

On top of the £95 million issue of ordinary shares, the firm may also raise up to £10 million through an Offer for Subscription which is not underwritten.

Chief executive Rachel Osborne said: “Today we are excited to launch ‘Ted’s Formula for Growth’, a comprehensive strategy for the Ted Baker brand which is supported by a significant recapitalisation of the business, that strengthens our position and enables us to both execute that transformation, and navigate through the disruption caused by Covid-19.

“The Ted Baker brand is much loved, it has a unique personality and character built up over many decades, and that provides us with a remarkably strong foundation from which to continue our international growth.  Over the past 6 months our new executive team have pulled together and undertaken a thorough review of the business, identified key opportunities and acted decisively in a number of areas.  I would like to thank each and every one of our team at Ted Baker for their extraordinary commitment over the past few months and I look forward to working with them to deliver this transformation and the exciting opportunities ahead.

 I am confident that our transformation plan will enable us, Ted Baker, to capitalise on our opportunities and deliver value for all of our shareholders.”



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