FILE PHOTO: Rain drips off a sign on a Ted Baker sign on a store in London, Britain October 06, 2015. British designer clothing brand Ted Baker on Tuesday said retail sales were up by just over 20 percent in its first half year, boosted by solid demand at home and a strong performance in North America. REUTERS/Neil Hall
(Reuters) – Fashion brand Ted Baker (TED.L) on Monday rolled out plans to raise 95 million pounds through a stock issue to help it ride out the challenges posed by the coronavirus, after reporting a loss of 79.9 million pounds for the year to January.
The company, known for suits, shirts and dresses with quirky details, laid out a transformation programme under its new Chief Executive Rachel Osborne as it strives to put a year marred by internal troubles and limp sales growth behind it.
“The Board recognises that last year’s performance was disappointing for all of Ted Baker’s stakeholders, reflecting a challenging external environment as well as significant internal disruption, driven by a number of senior leadership departures,” the company said in a statement.
Revenue slumped 36% for the 14-week period from Jan. 26 to May 2, mainly due to the stay-at-home orders to prevent the spread of COVID-19.
Even before the lockdown, Ted Baker was struggling to recover from setbacks including an accounting scandal, a string of profit warnings and management reshuffle after founder Ray Kelvin stepped down amid misconduct allegations. Kelvin has since denied the allegations.
Reporting by Muvija M in Bengaluru; Editing by Arun Koyyur and Rashmi Aich