Ted Baker appoints Deloitte to investigate £25m stock overstatement

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// Deloitte will work with Freshfields Bruckhaus Deringer on accounting inquiry
// The review is separate from Ted Baker’s root-and-branch review of its operation, now being overseen by AlixPartners

Ted Baker has hired Deloitte to investigate its accounting blunder which led to the fashion retailer overstating the value of its stock by £20 million to £25 million.

Deloitte will work alongside law firm Freshfields Bruckhaus Deringer on the inquiry, according to Sky News.

READ MORE: Ted Baker drafts in consultants to review operations

Both firms will report back to a board sub-committee that is chaired by independent director Sharon Baylay.

Ted Baker said the valuation was based on preliminary analysis and any adjustment “will have no cash impact and will relate to prior years”.

In a separate review, consultancy firm AlixPartners were also appointed by Ted Baker last week to support the root-and-branch review of its operations after a year which saw the retailer issue three profit warnings.

AlixPartners will be responsible for establishing a turnaround strategy, with a wider-ranging mandate to look at Ted Baker’s customer strategy, costs, supply chain and operations across departments.

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