Losses balloon at UK’s Ted Baker as lockdowns hammer retail sales, Retail News, ET Retail

British manner retailer Ted Baker explained on Monday its half-12 months losses ballooned as coronavirus-led lockdowns dented retail product sales, and warned of additional pain from a no-offer Brexit as the European Union divorce deadline loomed.

The coronavirus crisis compounded complications for the company, which experienced been hit by revenue warnings, administration modifications and an accounting scandal due to the fact founder Ray Kelvin stepped down as CEO in 2019 after misconduct allegations, which he denies.

Ted Baker experienced overhauled its top administration team this 12 months and elevated about 95 million pounds in equity to bolster its pandemic-hit finances.

Its a few-12 months turnaround system would supply 31 million pounds in annual savings, up from the 27 million pounds it targeted earlier, Ted Baker explained on Monday.

“Even with some of our legacy concerns currently being amplified by COVID-19, our equilibrium sheet is materially stronger than we experienced envisaged this early in the system and operational cash movement will be constructive for the total-12 months,” explained Chief Executive Officer Rachel Osborne.

“The major operational risk (from Brexit) stays the movement of goods into the United kingdom by the ports,” the company explained.

Ted Baker, recognised for suits, shirts and attire with quirky specifics, explained pretax loss widened to 39 million pounds ($fifty two.23 million) in the 6 months ended Aug. 8, from two.7 million pounds a 12 months earlier.