- Huw Hughes |
Ted Baker has announced it has overstated the value of its inventory and will be launching a comprehensive review of how the error was made.
The British luxury brand said that based on preliminary analysis, it estimates the overstatement to be to the value of 20 to 25 million pounds, adding that it believes “any adjustment to inventory value will have no cash impact and will relate to prior years.”
The company said it has appointed law firm Freshfields Bruckhaus Deringer and will also be appointing independent accountants to undertake “a comprehensive review of this issue”. They will report back to a board sub-committee chaired by its independent director Sharon Baylay.
“All costs and fees associated with completing the independent review will be expensed in the period incurred and clearly identified as such,” the brand said. “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.”
The luxury brand added that its trading update scheduled for 11 December will go ahead
Photo credit: Ted Baker, Facebook