// Ted Baker CEO Lindsay Page quits & chief financial officer Rachel Osborne moves into the role on an interim basis
// Chairman David Bernstein also quit, with Sharon Baylay hired as acting chair
// Resignations come as Ted Baker issued another profit warning & scrapped shareholder dividend payout
Ted Baker has been plunged into a crisis after it issued yet another profit warning and revealed the immediate departure of its chief executive and chairman.
The fashion retailer said chief executive Lindsay Page – who took over from founder Ray Kelvin after a scandal saw him quit in March – has been replaced on an interim basis by recently-appointed chief financial officer Rachel Osborne.
Ted Baker has also kicked off the search for a new chairman after David Bernstein stepped down. Sharon Baylay has been hired as acting chair.
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The resignations were announced as Ted Baker scrapped its shareholder dividend payout and said it is now expecting annual pre-tax profits of between £5 million and £10 million.
It attributed the profit warning to worse-than-expected trading in November and Black Friday weekend.
It also compares with pre-tax profits of £50.9 million the previous financial year.
Ted Baker said the past year has been the “most challenging in our history”, while its trading troubles were laid bare as it reported a 5.5 per cent drop in retail sales with currency effects stripped out for the 17 weeks to December 7.
It confirmed it has hired consultants Alix Partners to carry out a review of the retailer’s operational efficiency, costs and business model as part of an urgent recovery plan.
The firm already began a review of its assets in October, which is ongoing.
It sees Ted Baker’s woes worsen after it last week revealed that its inventory had been overstated by between £20 million and £25 million, sparking another shares tumble.
Shares in the British fashion retailer have slid by more than 75 per cent since January in a year which has seen it post four profit warnings.
The firm came under significant pressure after founder and former chief executive Ray Kelvin resigned from the company in March following allegations of inappropriate behaviour towards staff.
Kelvin had already taken a step back from activities at the business in December 2018 after allegations of misconduct involving “forced hugs” and ear-kissing.
Kelvin has denied any wrongdoing.
with PA Wires