Ted Baker stock may have been overvalued by up to £25 million
Fashion retailer Ted Baker has said it might have overstated the value of its inventory by up to £25 million.
Based on preliminary analysis, the company’s board has estimated that the sum could be between £20 million and £25 million although any adjustment to inventory value is likely to have no cash impact and will relate to prior years.
Ted Baker has appointed Freshfields Bruckhaus Deringer and will be hiring independent accountants to undertake a review of the issue. The firms will then report their findings to a sub-committee chaired by Ted Baker independent director Sharon Baylay.
In a statement, the company said: “Ted Baker is committed to ensuring the independent review is completed in an efficient and transparent manner and will update the market as appropriate. Whilst the review is ongoing, the company will not comment further.”
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