// Ted Baker discovers an overstatement of £20m-£25m in its inventory
// It has hired lawyers to carry out a review
// Ted Baker’s scheduled trading update next week will go ahead as planned
Bosses at Ted Baker have revealed an overstatement of between £20 million and £25 million in the value of stock held on its balance sheet.
The upmarket fashion retailer’s board said it has appointed lawyers from Freshfields Bruckhaus Deringer to carry out a review into how it was overstated.
The law firm, along with independent accountants, will the report back to a board sub-committee that is chaired by independent director Sharon Baylay.
- Ted Baker appoints new chief people officer
- Ted Baker’s interim CFO Bill Adams joins Moss Bros
- Ted Baker hires ex-Scotch and Soda CEO as new US boss
Ted Baker said the valuation was based on preliminary analysis and any adjustment “will have no cash impact and will relate to prior years”.
It added that its scheduled trading update next week will still go ahead.
“All costs and fees associated with completing the independent review will be expensed in the period incurred and clearly identified as such,” Ted Baker said in a statement.
“Ted Baker is committed to ensuring the independent review is completed in an efficient and transparent manner and will update the market as appropriate.
“Whilst the review is ongoing, the company will not comment further.”