// Ted Baker furloughs 2000 staff as a result of the coronavirus crisis
// This equates to about 75% of Ted Baker’s total workforce
// Those furloughed include shop floor staff and also head office staff
Ted Baker has reportedly placed approximately 2000 staff members on furlough as a result of lockdowns prompted by the coronavirus pandemic.
According to Drapers, the decision affects around 75 per cent of the fashion retailer’s total workforce and affects shop floor and some head office staff.
Employees were reportedly told of the decision yesterday, and that their salaries and wages would be covered under the government’s Coronavirus Job Retention Scheme.
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“In line with the UK government’s response to the Covid-19 pandemic, Ted Baker stores in the UK are temporarily closed, which is having a significant impact on the company’s revenues,” a spokesman said.
“Ted Baker has already taken a number of steps to reduce costs and protect cashflow, including by suspending all non-essential capital expenditure and stopping discretionary operating expenses.
“Today, we are taking a further step to reduce costs and safeguard jobs in the future by placing a significant number of our colleagues into the government-supported furlough scheme.”
The news comes a few days after Ted Baker announced Rachel Osborne as its new permanent chief executive.
Osborne left Debenhams to join Ted Baker last November as finance boss, before being appointed as acting chief executive in December in the wake of the sudden resignations of chief executive Lindsay Page and chairman David Bernstein.
Ted Baker said it was currently still searching for a chairman.
Meanwhile, last month the British retailer agreed terms for the sale of its London head office, the Ugly Brown Building, for £78.8 million.