Ted Baker launches fundraising to drive recovery after profits collapse

Ted Baker suffered a loss before tax at reporting level of £79.9m in the year to January 25, versus a profit of £30.7m the previous year. Total sales slipped 1.4% to £630.5m.

The quirky brand and retailer intends to raise £90m net through a share placing and open offer, which it said would allow it “to navigate the challenges of the global coronavirus pandemic and return to profitable growth”.

Before the coronavirus outbreak hit, Ted Baker had already suffered following the departure amid controversy of founder Ray Kelvin. His successor Lindsay Page also left after profit warnings and stock problems.

The retailer has set out a recovery strategy based upon strengths such as a “strong and resilient brand”, its channel, product and geographical mix, investment in technology and logistics in recent years, and “a strong culture carried by a passionate and engaged team”.

The three-pronged strategy comprises three “building blocks”: stabilising the business, including “rethinking Ted Baker’s vision and commercial strategy”; driving growth, through re-energising the brand and drawing new customers; and operational excellence, such as a digital-first approach.

Chief executive Rachel Osborne, the former finance boss who was promoted earlier this year, said: “We are excited to launch ‘Ted’s Formula for Growth’, a comprehensive strategy, which is supported by a significant recapitalisation of the business, that strengthens our position and enables us to both execute that transformation and navigate through the disruption caused by Covid-19.

“The Ted Baker brand is much loved, it has a unique personality and character built up over many decades, and that provides us with a remarkably strong foundation from which to continue our international growth.

“I am confident that our transformation plan will enable us, Ted Baker, to capitalise on our opportunities and deliver value for all of our shareholders.”