Ted Baker boss quits as retailer warns on profits - EpicNews

The chief executive of struggling retailer Ted Baker has resigned as the firm again warned over profits, sending its shares plunging.

The group said Lindsay Page, who took over from founder Ray Kelvin after he resigned in March, has been replaced by finance boss Rachel Osborne, who takes up the role with immediate effect.

Chairman David Bernstein has also quit.

The resignations were announced as the company scrapped its shareholder dividend payout and said it is now expecting annual pre-tax profits of between £5m and £10m after worse-than-expected trading in November and over Black Friday.

This compares with pre-tax profits of £50.9m the previous year.

Shares plummeted by more than 20% in early trading.

Ted Baker said the past year has been the “most challenging in our history”, as it reported a 5.5% drop in retail sales with currency effects stripped out for the 17 weeks to 7 December.

More from Business

It confirmed it has hired consultants Alix Partners to carry out a review of the group’s operational efficiency, costs and business model as part of an urgent recovery plan.

The firm already began a review of its assets in October, which is ongoing.

Ted Baker saw its troubles grow last week after it revealed an accounting blunder that led the brand to overstate the value of its stock by up to £25m.

Shares in the UK fashion firm have plunged by more than 75% since January in a year which has seen it post four profit warnings.

The firm has come under pressure after founder and chief executive Mr Kelvin quit the company following allegations of inappropriate behaviour towards staff.

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