Ted Baker has reportedly drafted in consultancy firm AlixPartners to support the root-and-branch review of its operations after a year which saw the retailer issue three profit warnings.
The review will analyse Ted Baker’s operations and is separate from the investigation into its £20 million to £25 million stock overstatement which was revealed earlier this week, Financial Times reported.
AlixPartners will be responsible for establishing a turnaround strategy, with a wider-ranging mandate to look at Ted Baker’s customer strategy, costs, supply chain and operations across departments.
The fashion retailer revealed cost-saving initiatives and improved procurement capability at the time of its half-year results in October.
Ted Baker recorded a £23 million loss before tax in the first half of its financial year due to “very difficult trading conditions”.
In relation to its stock overstatement, Ted Baker appointed law firm Freshfields Bruckhaus Deringer and forensic accountants to investigate the matter earlier this week.
However, it had already warned on profits three times prior to that.
The first alert came in February, when it said a £5 million stock write-down, costs associated with IT and warehouse transition and currency movements would result in profits falling short for the year to February 2019.
In June, the retailer said increased discounting had resulted in sales and margins sliding, prompting analysts to cut forecasts by around a quarter.
Sourced from Retail Gazette - written by Sahar Nazir