// Ted Baker founder Ray Kelvin no longer the biggest shareholder in the retailer he founded
// Kelvin’s stake now stands at 15.8%, compared to previous stake of 35%
// He was overtaken by investment firm Toscafund, which used the share listing to nearly double its stake to 26.4%
Ted Baker founder Ray Kelvin has seen his stake in the retailer slashed by 55 per cent after an investment firm surpassed him as the biggest shareholder following a fundraising drive.
Yesterday, Ted Baker tapped investors to raise £95 million through a share placing and open offer to help stabilise its finances and support a turnaround plan unveiled by new chief executive Rachel Osborne.
According to The Guardian, Kelvin bought £3.5 million worth of new shares in the fundraising round, which has so far diluted his stake in Ted Baker down to 15.8 per cent.
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Before yesterday, Kelvin’s stake in the retailer was around 35 per cent.
The Guardian reported that investment firm Toscafund used the share listing to nearly doubled its stake in Ted Baker to 26.4 per cent, making it the fashion retailer’s largest stakeholder.
Kelvin quit as chief executive in March last year in the wake of a scandal around allegations of “forced hugging” and other inappropriate behaviour, which he denies.
Since his departure, Ted Baker has been plagued with a string of profit warnings, internal governance upheavals, a significant stock overstatement and plummeting shares – all before the challenges arising from the pandemic even struck.
Meanwhile in its full year report for the period published yesterday and covering the period ending January 25, Ted Baker recorded a loss before tax of £79.9 million – compared to a profit of £30.7 million the previous year.
Total full-year sales declined 1.4 per cent to £630.5 million.
Ted Baker said that since the start of the current financial year, trading has been “significantly impacted” by the coronavirus pandemic, with sales plummeting 36 per cent for the 14 weeks to May 2.
Online retail sales jumped 50 per cent over the period, with a 78 per cent rise in the six weeks from March 22, it added.
Osborne also used Ted Baker’s full year update to unveil a three-pronged recovery strategy centred around business stabilisation, growth and operational excellence.