Will Ted Baker be next victim of the High Street Bloodbath? Bosses quit as profits plunge to less than £10m after troubled retailer records its 'worst ever year of trading'
- Fashion giant looking for a new chairman following a disappointing Black Friday
- Trading in November was also worse than bosses at the company had expected
- Expects pre-tax profits as low as £5million compared to £50.9million last year
Ted Baker bosses have quit after profits plunged to less than £10million after the troubled retailer's 'worst ever year of trading.'
The group said chief executive Lindsay Page – who took over from founder Ray Kelvin after he quit in March – has been replaced on an interim basis by finance director Rachel Osborne.
Ted Baker has also kicked off the search for a new chairman after David Bernstein stepped down. Sharon Baylay has been hired as acting chair.
The resignations were announced as Ted scrapped its shareholder 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.
Troubled retailer Ted Baker has seen its crisis deepen after warning over profits once again and revealing the immediate departure of its chief executive and chairman (Jonathan Brady/PA)
Ted Baker said the past year has been the 'most challenging in our history', while its trading troubles were laid bare as it reported a 5.5% drop in retail sales with currency effects stripped out 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.
It sees Ted Baker's woes worsen after bosses last week revealed they had uncovered that the group's inventory had been overstated by between £20 million and £25 million, sparking another shares tumble.
Shares in the UK fashion firm have slid by more than 75% since January in a year which has seen it post four profit warnings.
The firm came under significant pressure after founder and chief executive Mr Kelvin resigned from the company in March following allegations of inappropriate behaviour towards staff.
Mr Kelvin had already taken a step back from activities at the business in December 2018 after allegations of misconduct involving 'forced hugs' and ear-kissing. Mr Kelvin has denied any wrongdoing.
Bloodbath on the High Street: How shops in the UK went from bustling to bust
Mothercare, Debenhams and L.K. Bennett all fell into administration in 2019, with thousands of jobs cut or put at risk.
It was the second year in a row that the High Street was ravaged, after 2018 saw one of the worst years for UK retailers.
Baby retailer Mothercare cut 2,500 jobs after its administration announcement closed 79 stores nationwide.
It follows the likes of Bonmarche, Jack Wills and Karen Millen, which have all gone bust in recent months.
Mothercare has announced plans to put its UK retail business into administration
Crisis hit brands such as House of Fraser and Marks & Spencer have been fighting to keep stores open while other retailers such as New Look pushed for a solution to stop store closures and job losses.
In 2018 nearly 85,000 retail jobs were lost in the UK as businesses continued to go bust as 1,000 retail business went into administration between January and September.
As well as this the number of retail outlets left empty was up by 4,400 in 2018 according to data from the Local Data Company.
House of Fraser (pictured above) is one of the crisis hit brands on the UK High Street
Marks & Spencer has been battling with the UK High Street and had previously struck a deal with Ocado to transform grocery shopping
Last year New Look announced it would be closing 85 stores across the UK
High Street giant Gap has also announced it will close 230 stores worldwide as its US parent company launches a massive restructuring programme.
The pressure on High Street retailers has hit an all-time high as they continue to try and keep up with the ever growing popularity of online shopping.
Online retailers are able to keep prices low as they don't face the massive rental costs of physical stores or the staff rates.
While retailers battle the rise in online shopping they are also being forced to battle Brexit, as many supply chain routes and whether or not they will be available in a no-deal scenario have put added cost worries onto retailers as many consider stock piling their items or not importing them at all.
GAP (pictured above) also announced it was closing more than 200 stores as part of a worldwide restructuring programme
The rise in online shopping with companies such as Amazon has also put a strain on the High Street
Here are some of the big name retailers which have lost out as they face fierce competition from the rise of online shopping
Carpetright
The carpet retailer is closing 92 stores across the UK. These closures represent nearly a quarter of all UK Carpetright stores.
Toys R' Us
The UK's largest toy shop went into administration in February 2018, leading to an estimated 2,000 redundancies.
House of Fraser
The department store chain was on the verge of heading into administration but was rescued at the eleventh hour by Sports Direct owner Mike Ashley.
Maplin
The electronics giant has gone bust, closing shops across the country and putting thousands of jobs at risk.
Mothercare
The retailer has announced plans to put its UK retail business, which has 79 stores, into administration - putting around 2,500 jobs at risk. It had already closed 55 stores since last year.
Poundworld
Poundworld announced it was going into administration on June 11 after talks with potential buyer R Capital broke down, putting 5,100 jobs at risk.
Homebase
The DIY chain set to close 42 DIY outlets shut, putting around 1,500 jobs at risk.
Marks & Spencer
The retailer announced in May it plans to close 100 stores by 2022, putting hundreds of jobs at risk.
In August stores in Northampton, Falkirk, Kettering, Newmarket, New Mersey Speke, Stockton and Walsall all ceased trading.
Orla Kiely
Orla Kiely, the Irish fashion retailer collapsed in September and closed all its stores after a slump in profits.
HMV
In December HMV entered into administration with its flagship London Oxford Street having closed earlier this year.
L.K Bennett
Fashion brand L.Bennett announced it was filing for administration on March 1, 2019. Linda Bennett sent employees an email early in the morning to inform them of the news before it hit news outlets.
Pretty Green
In March, Liam Gallagher's Pretty Green filed a notice of intention to appoint Moorfields Advisory to handle insolvency problems across its UK stores. At the beginning of April 2019 JD Sports purchased the company, saving around 70 jobs.
Debenhams
Debenhams fell into administration in April with debts of £640million following three profits warnings last year.
The firm has 166 stores and employs 25,000 people but has announced plans for around 50 stores to close in the next two years, with 22 shutting by 2020, affecting 1,200 jobs.
Most watched News videos
- New video shows Epstein laughing and chasing young women
- Epstein describes himself as a 'tier one' sexual predator
- Buddhist monks in Thailand caught with a stash of porn
- Sarah Ferguson 'took Princesses' to see Epstein after prison
- Skier dressed as Chewbacca brutally beaten in mass brawl
- British Airways passengers turn flight into a church service
- Jenna Bush Hager in tears over disappearance of Nancy Guthrie
- Forth Bridge fireball fall into village streets
- China unveils 'Star Wars' warship that can deploy unmanned jets
- Amazon driver's furious rant about deliveries captured on ring camera
- Inside London's terrifying crimewave as gangs target high end stores
- Authorities give update on search for Savannah Guthrie's mom
