Ted Baker to Cut More Than 100 Jobs After Months of Upheaval

(Bloomberg) --

Ted Baker Plc will cut more than 100 roles at its head office as part of a broader strategic review aimed at turning around the struggling U.K. fashion brand.

The retailer, which has been reeling since the resignation of founder Ray Kelvin after allegations that he gave employees unwanted hugs, said it reviewed its operational efficiency, costs and business model. The company said new goals include expanding its online business, moving into new markets and improving the range and relevance of its products.

“These strategic priorities will form the basis of a broad transformation program at Ted Baker, the first phase of which is focused on profitability, cost and the effective use of capital,” the company said in a statement.

The apparel chain said it has already reduced the membership of its executive committee to 9 from 13. It plans to cut 102 head office roles and won’t fill a further 58 vacant posts. The changes will result in a cash charge of 2.7 million pounds ($3.5 million) but will reduce costs by 7 million pounds on an annualized basis.

Ted Baker has endured months of upheaval since the departure of Kelvin, which coincided with a downturn in sales in a highly competitive and promotional U.K. retail market. The company is operating without a permanent chairman or chief executive officer and has issued a series of profit warnings. It also recently disclosed that it overstated the value of its inventory by 58 million pounds.

“2019 was a very challenging year for Ted Baker, but I am confident about the future growth prospects for the group,” said Rachel Osborne, the acting CEO. “The strategic priorities we are announcing today will re-energize the Ted Baker brand and improve our customer proposition, ensuring the long-term success of the business.”

Kelvin, who is Ted Baker’s largest shareholder, has denied any suggestions of improper conduct.

To contact the reporter on this story: Deirdre Hipwell in London at dhipwell@bloomberg.net

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Anne Pollak

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