Ted Baker seeks £95m coronavirus rescue raise as it books £80m loss
Fashion retailer Ted Baker today set out plans to raise £95m in rescue cash to fund its escape from the coronavirus crisis, as it revealed losses amounted to almost £80m last year.
Ted Baker, which was hit by a scandal in 2019 after its founder quit over allegations of misconduct, is selling cut-price shares to raise the cash as it set out a restructuring plan.
Investors can buy up shares in the fashion brand at a hugely discounted 75p per share, compared to Friday’s closing price of 153.3p.
“This capital raising will strengthen the balance sheet, allowing the company to navigate through the Covid-19 disruption and invest in its future through the transformation plan,” Ted Baker said.
The figures
The retailer revealed the fundraising plan as it posted a 1.4 per cent drop in revenue for the 12 months to the end of January today, down to £630.5m.
Meanwhile, Ted Baker booked a pre-tax loss of £79.9m last year, compared to a pre-tax profit of £30.7m the year before, showing Ted Baker was struggling before the impact of coronavirus on the UK.
And the brand warned coronavirus has badly hit its sales during lockdown. Revenue has plunged 36 per cent up to early May, while store sales were down 34 per cent despite a 50 per cent jump in its online channel.
The business now intends to save £138.4m from its cash flow and to defer £10.9m of payments. Executive pay has also been cut by 15 per cent and it is currently renegotiating rents.
What Ted Baker said
Chief executive Rachel Osborne said:
Today we are excited to launch ‘Ted’s Formula for Growth’, a comprehensive strategy for the Ted Baker brand which is supported by a significant recapitalisation of the business, that strengthens our position and enables us to both execute that transformation, and navigate through the disruption caused by Covid-19.
The Ted Baker brand is much loved, it has a unique personality and character built up over many decades, and that provides us with a remarkably strong foundation from which to continue our international growth. Over the past six months our new executive team have pulled together and undertaken a thorough review of the business, identified key opportunities and acted decisively in a number of areas. I would like to thank each and every one of our team at Ted Baker for their extraordinary commitment over the past few months and I look forward to working with them to deliver this transformation and the exciting opportunities ahead.