// Ted Baker raises £105m to survive through impact of Covid-19
// It expects to raise additional £10m through an offer for subscription
Ted Baker has raised £105 million through a stock issue to help support it through the coronavirus pandemic.
The British retailer also expects to raise an additional £10 million through an offer for subscription, which is an invitation to the public to subscribe for new shares in the company.
Ted Baker founder Ray Kelvin saw his stake in the retailer slashed by 55 per cent earlier this month, after investment firm Toscafund surpassed him as the biggest shareholder.
- Ray Kelvin no longer biggest shareholder in Ted Baker
- Ted Baker launches £95m fundraising drive as it plunges into £79m loss
Toscafund used the share listing to nearly double 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.
The fundraising comes after a difficult year of trading for Ted Baker, where underlying profit before tax plummeted 92.4 per cent to £4.8 million in the year to January 25.
Meanwhile, the retailer’s new chief executive Rachel Osborne presented a three-year transformation plan that highlights Ted Baker’s move to a digital-first business.
The plan offers a “refreshed and demand-driven” product offering, and increased brand awareness outside of the UK market.