July 22 (Reuters) - Shares in Ted Baker rose 4.4% on Monday after a newspaper reported that its founder Ray Kelvin could back a private equity buyout of the high street retailer, months after he resigned over claims he presided over a culture of “forced hugging”.
Kelvin, who had been CEO since the company's launch in 1988, has indicated that he would support a deal to take the company private under the existing management, the Sunday Times reported here
Ted Baker did not immediately respond to a request for comment.
Ted Baker’s shares lost more than a quarter of their value last month after the retailer warned that underlying profit for the year would fall short of analysts’ estimates after an “extremely difficult” start to 2019.
The warning underlined the task facing Lindsay Page, who was promoted to permanent boss in April as the high street retailer sought to move on from misconduct allegations against its leading shareholder Kelvin.
Kelvin owns 34.9% of the firm according to Refinitiv Eikon data. He could not immediately be reached for comment. (Reporting by Noor Zainab Hussain in Bengaluru, editing by Louise Heavens)