The struggling fashion retailer Ted Baker has found "another banana to slip on", says Camilla Canocchi on This Is Money. The stock fell to a ten-year low this week after it admitted that it had overstated the value of its inventory by around £25m.
The group has called in lawyers and independent accountants to investigate the issue and says it has enough cash to "cushion the impact" on the balance sheet.
However, the company's decision to bring in external investigators suggests that there may be more serious problems "bubbling under the surface".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The latest revelations worsen what has already been a "torrid year" for a firm previously hailed as one of the "shining lights" of the high street, says Julia Kollewe in The Guardian. In March founder Ray Kelvin was forced to stand down after former and current staff complained about an alleged regime of "forced hugs" and harassment. The firm's profits were hit by the £2m cost of an investigation and legal matters relating to the allegations. Since then the company has issued three profit warnings and dived to a first-half loss of £23m in October, its first in more than two decades.
The fact that Ted Baker's share price "has unravelled faster than a snagged cardy", falling more than 80% in nine months, increases speculation that Kelvin may be tempted to return with a "cut-price buyout bid", says Ben Marlow in The Daily Telegraph. However, those betting on this outcome should be aware that every "fresh clanger" makes that "an even bigger leap of faith".
-
SIPP holders to get cash warnings and be offered default fundsNews Providers will be required to offer investors a default fund and must warn customers of the inflationary risk of cash savings the regulator has said. What the new rules mean for your retirement pot?
-
Zoopla: Asking price discounts hit a five-year high – is now the time to buy a property?
News Zoopla’s October House Price Index shows sellers are accepting discounts of 5.5% on average to secure a sale – we reveal where homeowners are taking the biggest asking price cuts
-
Ted Baker shares are a bargain – here's how to play them
Features The sharp decline in Ted Baker shares looks excessive, say Matthew Partridge.
-
Ted Baker needs a reboot
Features Ted Baker, the clothing chain, has been a rare retail success story on the high street. Now it is in the headlines for the wrong reasons. Matthew Partridge reports.
