Troubled retailer Ted Baker's chief executive and chairman have quit in the wake of a £25 million inventory blunder.
Chief executive Lindsay Page had only taken over from founder Ray Kelvin after he quit in March amid claims of an inappropriate 'forced hugging' culture at the firm. Page, who had been with the group since 1997 before the Company's IPO, has been replaced on an interim basis by finance director Rachel Osborne.
Ted Baker, whose first shop opened in Glasgow in 1988, has also began the search for a new chairman after David Bernstein stepped down and was replaced by Sharon Baylay as acting chair.
The group last week called in lawyers to investigate an overstatement of £20-25 million in its inventory of stock. It has scrapped its dividend payout and said it is now expecting annual pre-tax profits of between £5 million and £10 million after worse-than-expected trading in November and over Black Friday. This compares with pre-tax profits of £50.9 million the previous year.
Ted Baker said the past year has been the "most challenging in our history", as it reported a 5.5% drop in retail sales for the 17 weeks to December 7.
It confirmed it has hired consultants Alix Partners to carry out a review of the group's operational efficiency, costs and business model as part of an urgent recovery plan.
The firm already began a review of its assets in October, which is ongoing.
