Problems continue at troubled Ted Baker (TED.L), with the fashion brand warning investors on Wednesday an issue with overvalued stock is more than twice as bad as first thought.
The retailer said a review by accountants Deloitte had found stock held by the company was overvalued by £58m ($75.7m).
The number is “materially higher” than the initial estimate of £25m given in December, Ted Baker admitted. Shares in the company fell 15% when the problem was first announced in December and the stock shed another 5% on Wednesday.
Ted Baker reiterated that the stock issues were non-cash items, so would affect accounting rather than reserves, and related to past years.
The company said in a brief statement it would provide a further update when it delivers full-year results in March.
The inventory issues extend a dreadful run of form for the company. Founder Ray Kelvin was forced to step down as chief executive last year after allegations over his conduct and his successor quit in December after a profit warning. The share price has fallen over 90% since its recent peak in February 2018.
“Long-suffering shareholders, including the former boss Ray Kelvin, may be relieved to hear that there are no plans for any further update until the time of the preliminary results in March,” said Nick Bubb, an independent retail analyst.