Yahoo Finance Ted Baker cutting jobs after 'very challenging year'
Struggling fashion chain Ted Baker has announced a shake-up that will see the group shed 160 roles.
The company said actions to reduce costs following a review would centre on its office functions and see 102 staff lose their jobs and a further 58 positions, currently vacant, remain so.
Ted Baker has endured a series of profit warnings over the past year amid tough store trading and the emergence of a £58m black hole in its inventory that contributed to a collapse in its share price - losing almost three-quarters of its value.
The past year also signalled a changing of the guard as founder and chief executive Ray Kelvin quit amid allegations from staff about his behaviour, including forced hugs. He denies the claims.
Acting chief executive Rachel Osborne, who took on the top job in September, has lost no time in ordering a series of reviews aimed at delivering a transformation programme in time for the group's full-year results in May.
Sky News reported on Monday that it was seeking to sell its London HQ as part of efforts to raise cash.
It said the proposed cuts hoped to save £7m annually but would result in a £2.7m restructuring charge in its current year.
Shares fell 2%.
The focus of the business, the statement added, would be on seven key areas including customers, revitalising the brand and growing Ted Baker's online presence.
Ms Osborne told investors: "2019 was a very challenging year for Ted Baker, but I am confident about the future growth
prospects for the group.
"The strategic priorities we are announcing today will re-energise the Ted Baker brand and improve our customer proposition, ensuring the long-term success of the business.
"We recognise that to support these priorities we need to become more efficient, simplify our structure and reduce our cost base to more sustainable levels for the future.
"The changes we are announcing today are difficult because colleagues across the business have been working hard in what has been a challenging period for Ted Baker."
