9th Dec 2019 09:44
(Alliance News) - Ted Baker PLC has drafted in headhunters to find a replacement for Chair David Bernstein in what would be the latest boardroom reshuffle in a troubled year for the one-time star retailer, the Sunday Times reported on Sunday.
The newspaper reported that the firm has called upon Los Angeles, California-based consultants Korn Ferry as it seeks to replace Bernstein, who has been chair since 2013.
https://www.thetimes.co.uk/article/troubled-ted-baker-seeks-replacement-for-chairman-david-bernstein-ppwnwhnqs#
Ted Baker shares were 1.2% higher at 396.60 pence each in London on Monday morning.
It would be another top-level change for the embattled retailer which has been hit with scandal, coupled with a worrying sales performance.
Its founder, Ray Kelvin, resigned as chief executive earlier this year after allegations of misconduct were made against him.
Kelvin took a voluntary leave of absence from his role as chief executive of Ted Baker in December last year, after he was accused by the company's staff of forced "hugging" and inappropriate touching and comments.
Acting CEO Linday Page, formerly the firm's chief operating officer, took on the role on a permanent basis from April.
Poor first-half trading has put even more pressure on the firm. In the six months to August 10, revenue slipped 0.7% year-on-year to GBP303.8 million from GBP306.0 million. Ted Baker slumped to a pretax loss of GBP23.0 million from a GBP24.5 million profit, on higher costs and exceptional items.
Last week, the company suffered yet another setback after it reported that it had overstated the value of its stock by up to GBP25 million. Ted Baker however explained that that any adjustment to inventory would have "no cash impact and will relate to prior years".
Ted Baker last Monday it had appointed law firm Freshfields Bruckhaus Deringer LLP and would be appointing independent accountants as well. On Friday, Sky News said Deloitte will be the accountants drafted in.
https://news.sky.com/story/ted-baker-hires-deloitte-to-probe-25m-missing-stock-mystery-11879715
By Eric Cunha; [email protected]
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