Retailer hires lawyers
Ted Baker shares fall as fresh crisis engulfs chain
Ted Baker: more problems
Fashion chain Ted Baker has appointed a law firm to advise on how it tackles an overestimation of its stock.
The company discovered the inventory valuation on its balance sheet had been overstated by between £20 million and £25m.
It has appointed Freshfields Bruckhaus Deringer to undertake a comprehensive review and will appoint independent auditors. KPMG has audited its accounts for nearly 20 years.
Shares in Ted Baker hit a ten-year low after this latest crisis to engulf the company. They fell 8%, or 31.6p, to 366p and have fallen 83% since January, with the company now valued at £163m.
The error has emerged just weeks after Rachel Osborne took over as finance chief from Charles Anderson, who left to join Mulberry after 17 years at the company.
It is the second time the company has called in external investigators this year, after founder Ray Kelvin was forced to resign as chief executive in March following a ‘forced hugging’ scandal.