LONDON — Ted Baker’s share price closed down 13.4 percent on Tuesday after the high-street brand issued its third profit warning this year and announced a major board shakeup following an investigation into irregularities on its balance sheet.
The share price, which deteriorated throughout the day, closed at 3.46 pounds.
The brand, which saw its founder and part owner Ray Kelvin quit under a cloud, said David Bernstein has stepped down as executive chairman with immediate effect, while company veteran Lindsay Page has resigned as chief executive officer.
Sharon Baylay has assumed the role of acting chair until a permanent successor is appointed, while Rachel Osborne has agreed to become acting ceo with immediate effect.
The company said Page would assist with an orderly transition of his role and the search for a new ceo will commence in January.
The shakeup follows Ted Baker’s announcement last week that the value of inventory held on its balance sheet has been overstated.
The company said, based on preliminary analysis, the board estimates an impact on value to range from 20 million pounds to 25 million pounds, but the error will have “no cash impact and will relate to prior years.”
The company has since called in Deloitte to investigate
The share price, which deteriorated throughout the day, closed at 3.46 pounds.
The brand, which saw its founder and part owner Ray Kelvin quit under a cloud, said David Bernstein has stepped down as executive chairman with immediate effect, while company veteran Lindsay Page has resigned as chief executive officer.
Sharon Baylay has assumed the role of acting chair until a permanent successor is appointed, while Rachel Osborne has agreed to become acting ceo with immediate effect.
The company said Page would assist with an orderly transition of his role and the search for a new ceo will commence in January.
The shakeup follows Ted Baker’s announcement last week that the value of inventory held on its balance sheet has been overstated.
The company said, based on preliminary analysis, the board estimates an impact on value to range from 20 million pounds to 25 million pounds, but the error will have “no cash impact and will relate to prior years.”
The company has since called in Deloitte to investigate