Lindsay Page, CEO of Ted Baker, resigned from his post on Tuesday as the sales continued slumping.
The controversy over the inventory valuation was also instrumental in the exit of the CEO. Following the resignation, Chairman David Bernstein too followed suit.
It might be recalled that last year Ted Baker’s founder Ray Kelvin was asked to move out after there were allegations that he forced his staff to hug him. The sales of the company had then too fallen by a whopping 80 per cent.
Immediately after both the resignations, Ted Baker brought down its profit prediction for the current year to a minimum pre-tax profit of £5 million.
That’s 90 per cent less than £50.9 million attained in the year to March. The announcement itself saw the share price go down further by 15 per cent.
In November, Ted Baker had appointed some consultants to check its inventory value following overstatement of stock (range of £20 to £25 million).
With festive season approaching fast, it will be interesting to see Ted Baker’s business strategies.