Ted Baker hires consultants to draw up turnaround plan - report

Ted Baker is understood to have hired a consultancy firm to help formulate a turnaround strategy, after the beleaguered retailer issued a string of profit warnings and revealed a possible £25m inventory black hole.

AlixPartners has been hired to review the entire business, according to the Financial Times, citing two unnamed sources briefed on the appointment. It has been asked to come up with a turnaround strategy as well as assess customer strategy, costs, and the supply chain, the newspaper said.

AlixPartners declined to comment on the FT story. A Ted Baker spokesman told the newspaper: "From time to time the group engages professional advisers to provide additional expertise in order to help enhance the group’s operations and drive progress against Ted Baker’s strategy to develop as a lifestyle brand."

The appointment is separate to an investigation being carried out by Freshfields Bruckhaus Deringer. Ted Baker appointed the City law firm and a team of forensic accountants after it announced it may have overstated the value of its inventory by between £20m and £25m.

Shares in Ted Baker slumped to a decade-low on 2 December, the day of the announcement, rounding off a torrid year for the chain. In March, Ray Kelvin - chief executive since 1988 - resigned over allegations he presided over a culture of "forced hugging". Kelvin, who is widely recognised as transforming Ted Baker from its one shop origins to the global business it is today, has denied all allegations against him.

The retailer has also warned on profits and in October revealed a half-year loss of £23m compared to a profit a year earlier of £24.5m, with revenues down 0.7% to £304m. It blamed "very challenging" trading conditions, including "unprecedented and sustained levels" of promotional activity from rivals, and warned on the full year.

The stock was down 4% at 385.6p by 1300 GMT.