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Ted Baker says may have overstated inventory by up to 25 million pounds

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By Reuters
Ted Baker says may have overstated inventory by up to 25 million pounds
FILE PHOTO: Shoppers walk past a Ted Baker store on Regents Street in London, Britain December 17, 2018. REUTERS/Simon Dawson   -   Copyright  SIMON DAWSON(Reuters)
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(Reuters) – Ted Baker Plc said on Monday it might have overstated inventory by as much as 25 million pounds, the latest in a string of challenges for the British fashion retailer’s newly appointed boss.

Shares were expected to tank as much as 30% when the market opens as per premarket indicators, deepening a 74% plunge so far this year.

The company, which brought in Lindsay Page as chief executive officer this year following the departure of Ray Kelvin after misconduct allegations, said it expects no cash impact from adjustments to the inventory value that related to prior years.

The news comes just weeks after the company appointed Rachel Osborne as its new finance head.

Liberum analysts called the update “less than ideal” for the high street retailer, which in October saw its shares plummet in value when it issued a second profit warning in four months.

The company has appointed Freshfields Bruckhaus Deringer to undertake an independent review of the issue, Ted Baker said.

(Reporting by Muvija M in Bengaluru; Editing by Sriraj Kalluvila and Rashmi Aich)