February 26, 2020 / 11:03 AM / a month ago

Ted Baker's tale of management and accounting woes

(Reuters) - Troubled fashion retailer Ted Baker (TED.L) said on Wednesday it would cut 102 jobs and remove another 58 posts, which are currently vacant, at its head office to reduce costs.

FILE PHOTO: Shoppers walk past a Ted Baker store on Regents Street in London, Britain December 17, 2018. REUTERS/Simon Dawson

The company opened its first store in Glasgow in 1988 with quirky details on suits, shirts and dresses helping it to stand out from retail rivals and grow to its 560 stores and concessions globally.

Ted Baker has, however, seen its fortunes turn for the worse after allegations against former chief executive and founder Ray Kelvin relating to his habit of hugging business colleagues surfaced in 2018. Kelvin denies any improper conduct.

Following is a timeline of challenges the retailer has faced since then:

DECEMBER 2018

Ted Baker says it will investigate claims against Kelvin relating to his habit of hugging business colleagues.

DECEMBER 2018

Kelvin takes a voluntary leave of absence while allegations about his conduct were being investigated.

MARCH 2019

Kelvin resigns as chief executive, seeking to allow the fashion brand he founded to move on from misconduct allegations.

MARCH 2019

Ted Baker reports its first drop in annual profit since the 2008 financial crisis, highlighting tough conditions on Britain’s high streets.

APRIL 2019

Ted Baker names company veteran Lindsay Page as its boss, also introducing changes to workplace standards.

JUNE 2019

The company warns that underlying profit for the year will fall short of analysts’ estimates after an “extremely difficult” start to 2019.

JULY 2019

Media reports say Kelvin would support a private equity buyout months after he quit over allegations of misconduct.

SEPTEMBER 2019

Ted Baker appoints Debenhams veteran Rachel Osborne as its new finance chief.

OCTOBER 2019

Ted Baker issues its second profit warning in four months on the back of what it calls the worst business conditions in decades.

DECEMBER 2019

Ted Baker says it may have overstated inventory by as much as 25 million pounds.

DECEMBER 2019

Ted Baker’s CEO Lindsay Page and Chairman David Bernstein, make a sudden exit as it issues another profit warning and suspends its dividend.

JANUARY 2020

An accounting scandal at Ted Baker is more than twice as big as initially estimated, the British fashion retailer said.

JANUARY 2020

Ted Baker said non-executive director Jennifer Roebuck will become chief customer officer, a newly created role, and that the search for a permanent chief executive officer and chairman was still in progress.

Reporting by Noor Zainab Hussain and Aniruddha Ghosh in Bengaluru; Editing by Mark Potter

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