Ted Baker appoints Deloitte to probe £25m stock overstatement
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Ted Baker has appointed ‘Big Four accountancy firm’ Deloitte to probe into its accounting blunder that revealed it had overstated the value of its stock by up to £25m.
According to Sky News, the auditor will work alongside law firm Freshfields Bruckhaus Deringer on the inquiry.
Earlier this month, the company’s board estimated the value of inventory on its balance sheet was overstated by £20m to £25m, according to a “preliminary analysis”. It added that any adjustment to inventory value would have “no cash impact” and would instead relate to prior years.
In a separate review, it was reported that the fashion retailer drafted in consultancy firm AlixPartners to conduct a review of its operations.
The two firms will report to a board sub-committee, which is chaired by independent director Sharon Baylay.
Ted Baker has also appointed consulting firm Korn Ferry to recruit a new chairman that will succeed David Bernstein.
Bernstein was appointed chairman in 2013, and took on executive responsibilities after founder Ray Kelvin stepped down earlier this year as a result of accusations of inappropriate behaviour towards staff and sexual harassment claims.
The Sunday Times has that reported, Baylay will also lead the hunt for a new chairman.
Retail Sector has contacted Ted Baker for comment.
