UK fashion retailer Ted Baker cut 953 jobs because of losses in the first half this year resulting from the coronavirus-induced lockdowns, it said, warning of further pain from a potential no-deal Brexit. “Even with some of our legacy issues being amplified by COVID-19, our balance sheet is materially stronger than we had envisaged this early in the plan and operational cash flow will be positive for the full-year,” said chief executive Rachel Osborne.
The pandemic compounded difficulties for the retailer, which has been hit by profit warnings, management changes and an accounting scandal since founder Ray Kelvin stepped down as chief executive officer in 2019 after misconduct allegations, which he has denied.Ted Baker cut 953 jobs because of losses due to lockdowns in the first half, and warned of further pain from a potential no-deal Brexit. The pandemic compounded difficulties for the retailer, which has been hit by profit warnings, management changes and an accounting scandal since founder Ray Kelvin stepped down as CEO in 2019 after misconduct allegations.#
Ted Baker overhauled its management team this year and raised about $126 million in equity to bolster its pandemic-hit finances, according to a global newswire.
Its three-year turnaround plan is expected to deliver £31 million in annual savings, up from the previously targeted £27 million, the company said.
With Britain’s full exit from the European Union only weeks away and a trade deal still hanging in the balance, Ted Baker warned that, in a worst-case scenario, full-year profit could take a £16.1 million pound hit.
Fibre2Fashion News Desk (DS)
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