Ted Baker has said it is “determined to learn lessons” from a “forced hugs” scandal that prompted the departure of founder Ray Kelvin.
The statement was delivered alongside Ted Baker’s results which revealed that annual profits at the fashion chain had slumped by more than a quarter.
Mr Kelvin was forced to leave this month after allegations that he massaged employees, kissed their ears and asked some to sit on his lap. The firm is continuing an investigation into the allegations against Mr Kelvin.
Pre-tax profits at the company he founded 32 years ago fell 26.1 per cent to £50.9m in the year to 26 January.
Sales grew across the UK, Europe and North America Group, sending overall revenue up 4.4 per cent to £617.4m.
1/9 Toys ‘R’ Us
Customers shop at a Toys ‘R’ Us store. The retail chain announced plans to shut all of its US stores, becoming one of the biggest casualties of the retail shakeout amid the rise of e-commerce. The debt-plagued company announced that it has filed a motion for bankruptcy court approval to liquidate its US operations, a move that could hit 33,000 jobs. The UK retailer failed to find a buyer and said their 105 Toys R Us stores would remain open until further notice, with administrators appointed to begin “an orderly wind-down”.
AFP/Getty
2/9 New Look
New Look announced it will shut 60 stores and cut 980 jobs as part of a restructuring plan agreed with its creditors.
PA
3/9 Maplin
A Maplin store displays closing down notices after the company went into administration.
Reuters
4/9 Claire’s Accessories (US only)
People walk past a Claire’s store in downtown Chicago. The chain that has pierced the ears of millions of teens has filed for Chapter 11 bankruptcy protection. The accessories chain said that its stores will remain open as it restructures its debt.
AP
5/9 Carpetright
Carpetright announced that it has secured £12.5m of emergency funding from one of its largest shareholders and that it is exploring the opportunity of seeking approval for a restructuring plan under which it would slash rents and shut stores to avoid going into administration.
Reuters
6/9 MOSS BROS.
Suits specialist Moss Bros has reported a drop in earnings and profit in 2017, blaming a “tough end to the year” and stock shortages which hurt sales. Chief executive Brian Brick said: “Going forward, we are planning for an extremely challenging retail environment, not least because of the uncertain consumer environment and significant cost headwinds.”
PA
7/9 Mothercare
Mothercare warned over profits after UK sales plunged in the run-up to Christmas 2017, with consumer spending falling in both stores and online.
PA
8/9 House of Fraser
The Chinese owner of House of Fraser plans to sell its majority stake in the troubled department-store chain, adding to the upheaval on the UK’s shopping streets.
Getty Images
9/9 Conviviality – Bargain Booze
Bargain Booze owner Conviviality could be heading for administration after failing to secure emergency funding, placing 2,500 jobs at risk.
AFP/Getty
1/9 Toys ‘R’ Us
Customers shop at a Toys ‘R’ Us store. The retail chain announced plans to shut all of its US stores, becoming one of the biggest casualties of the retail shakeout amid the rise of e-commerce. The debt-plagued company announced that it has filed a motion for bankruptcy court approval to liquidate its US operations, a move that could hit 33,000 jobs. The UK retailer failed to find a buyer and said their 105 Toys R Us stores would remain open until further notice, with administrators appointed to begin “an orderly wind-down”.
AFP/Getty
2/9 New Look
New Look announced it will shut 60 stores and cut 980 jobs as part of a restructuring plan agreed with its creditors.
PA
3/9 Maplin
A Maplin store displays closing down notices after the company went into administration.
Reuters
4/9 Claire’s Accessories (US only)
People walk past a Claire’s store in downtown Chicago. The chain that has pierced the ears of millions of teens has filed for Chapter 11 bankruptcy protection. The accessories chain said that its stores will remain open as it restructures its debt.
AP
5/9 Carpetright
Carpetright announced that it has secured £12.5m of emergency funding from one of its largest shareholders and that it is exploring the opportunity of seeking approval for a restructuring plan under which it would slash rents and shut stores to avoid going into administration.
Reuters
6/9 MOSS BROS.
Suits specialist Moss Bros has reported a drop in earnings and profit in 2017, blaming a “tough end to the year” and stock shortages which hurt sales. Chief executive Brian Brick said: “Going forward, we are planning for an extremely challenging retail environment, not least because of the uncertain consumer environment and significant cost headwinds.”
PA
7/9 Mothercare
Mothercare warned over profits after UK sales plunged in the run-up to Christmas 2017, with consumer spending falling in both stores and online.
PA
8/9 House of Fraser
The Chinese owner of House of Fraser plans to sell its majority stake in the troubled department-store chain, adding to the upheaval on the UK’s shopping streets.
Getty Images
9/9 Conviviality – Bargain Booze
Bargain Booze owner Conviviality could be heading for administration after failing to secure emergency funding, placing 2,500 jobs at risk.
AFP/Getty
The results come at the end of a challenging year for the company, which has taken its toll on the balance sheet.
Exceptional items totalling £12.1m included the cost of an external investigation into Mr Kelvin’s conduct.
Ted Baker also wrote off unpaid bills from House of Fraser after the department store went into administration last August.
The company also cut prices in a bid to attract shoppers in a challenging environment on the high street. Price promotions contributed to a narrowing of gross margins which fell to 58.3% from 61%.
Executive chairman David Bernstein said: “Performance has been impacted by the very difficult trading conditions throughout the year, including competitive discounting across the retail sector, consumer uncertainty, the well-publicised challenges facing some of our UK trading partners, and the unseasonable weather across our global markets at different points throughout the period.
“Despite this challenging backdrop, Ted Baker continues to develop as a global lifestyle brand reflecting the strength of the brand, the design and quality of our collections and the passion and commitment of our talented teams across the world.”
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