An additional £10m is expected to be raised through an offer for subscription (an invitation to the public to subscribe for new shares in the company).
Earlier this month Ted Baker founder Ray Kelvin cut his stake in the fashion retailer by 55%, after investment firm Toscafund overtook him as the company’s largest shareholder.
Kelvin was CEO of Ted Baker until March 2019, when he resigned with immediate effect following allegations of misconduct. Kelvin has denied all allegations.
The emergency fundraising comes after a set of difficult results for Ted Baker. Underlying profit before tax plummeted 92.4% to £4.8m in the year to 25 January 2020.
New chief executive Rachel Osborne announced a new three-year transformation plan that hinges on Ted Baker’s move to a digital-first business, with a “refreshed and demand-driven” product offering, and increased brand awareness outside the UK market.