Ted Baker founder Ray Kelvin (pictured), who had to step aside from the company last year over allegations of inappropriate behaviour, has seen his holding in the fashion company fall by more than half as part of an emergency £105m fundraising, say Jasper Jolly and Sarah Butler in The Guardian.
Most of the money will come from a share placing. This comes “hot on the heels” of the sale and leaseback of Ted Baker’s London headquarters, which raised £72m to pay back lenders in March.
Kelvin is paying a “heavy price” to keep his business afloat, but something needs to be done, says Ben Marlow in The Daily Telegraph. Since Kelvin left there have been “four profit warnings”; a board “clearout”; an audit error that led to a “massive overstatement” in the value of the clothes sitting in warehouses and “then finally Covid-19”. All these have wiped 90% off the stock in a year.
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
Still, throwing money at the problem “is no guarantee it will go away”, especially since around half the £200m raised this year will go to creditors and bankers. Investors should avoid the temptation to invest in this “dog of a stock”, says Jim Armitage in the Evening Standard. Not only do lockdowns and homeworking mean that it’s the “worst ever time” for Ted Baker to be selling pricey suits and party frocks, but demand for Ted’s “fancy fashions” is also unlikely to bounce back soon enough for the business and brand to retain “long-term relevance and credibility”. The upshot? While turning around a “soiled brand” is always difficult, it looks “nigh on impossible” in this market.
-
Investing in a dangerous world: key takeaways from the MoneyWeek SummitIf you couldn’t get a ticket to MoneyWeek’s summit, here’s an overview of what you missed
-
Autumn in Crete, the Greek island of cultureMoneyWeek Travel Katie Monk reviews the InterContinental Crete, Grecotel LUXME White Palace and the adults-only Asterion Suites & Spa
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsLooking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go? We round up the best investing apps
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
