Home world Ted Baker hires Deloitte to probe £25m stock mystery

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Ted Baker hires Deloitte to probe £25m stock mystery

by ace
Ted Baker

Ted Baker called on Deloitte researchers to investigate the accounting errors that led the brand to overstate its stock value by up to £ 25 million.

Sky News found that Grand Auditor Four was appointed by Ted Baker earlier this week and will work closely with Freshfields Bruckhaus Deringer law firm in the investigation.

The overstatement of the stock came after a torrid year for the retailer, who saw founder Ray Kelvin step down as CEO after allegations of his conduct.

Kelvin, who remains Ted Baker's largest shareholder, has denied allegations of misconduct.

Deloitte's research may ultimately provide an uncomfortable read for KPMG, Ted Baker's auditor since 2002.

Last year, KPMG was fined £ 3 million by the Financial Reporting Council for violating the regulator's ethical standards regarding non-audit services provided to the fashion retailer.

The penalty was reduced to £ 2.1 million because KPMG proactively settled it.

Sources expect the audit mandate to be tendered in the near future.

A commercial update by Ted Baker next week will further add pressure from Lindsay Page, the former chief financial officer who took over as CEO earlier this year.

The company has already hired AlixPartners consultants to work out a plan to improve its operating performance, the Financial Times reported this week.

A spokesman for Ted Baker declined to comment.

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