Troubled high street retailer Ted Baker has revealed that an accounting error meant it had overstated the value of its stock by £58m. This is more than double the previous estimate of £25m. The new estimate comes after a review by global accountancy firm, Deloitte.
On December 2, 2019, Ted Baker announced that the board would be appointing independent accountants to undertake a comprehensive review of its stock inventory position. Deloitte was subsequently appointed to conduct that work.
Ted Baker has had a year on continual issues. Last month, the firm announced that Chief Executive Officer Lindsay Page – who only took up the role in April 2019 – had resigned following the firm’s profit warning.
Earlier last year, they also announced that the share price had fallen by 35% after it posted losses of over £23m.
All of this followed the unceremonious stepping down of former CEO Ray Kelvin, following misconduct claims.