Ted Baker fundraises £95m ahead of workforce reducing restructure
A UK clothing brand has announced that it will be implementing a “significant cost saving” on payroll by reducing its headcount.
Ted Baker, headquartered in London, reported today that it has seen an £80m loss this year, leading to a fundraise of £95m to help “navigate” the current crisis and to implement its restructuring plan.
The company has not given an indication as to how many jobs might be affected by its reorganisation, but predicts that together with other cost-saving measures the plans will result in £7m of annualised savings.
It said that it will see both “centralised headcount reduction” and “global payroll costs reduction”.
It also reported that its revenue for the year is down by 1.4 per cent, from £639.6m to £630.5m, and that since January, its revenue has dipped 36 per cent.
Rachel Osborne, CEO of Ted Baker, commented: “Today we are excited to launch ‘Ted’s Formula for Growth’, a comprehensive strategy for the Ted Baker brand which is supported by a significant recapitalisation of the business, that strengthens our position and enables us to both execute that transformation, and navigate through the disruption caused by COVID-19.
The Ted Baker brand is much loved, it has a unique personality and character built up over many decades, and that provides us with a remarkably strong foundation from which to continue our international growth.
“Over the past 6 months our new executive team have pulled together and undertaken a thorough review of the business, identified key opportunities and acted decisively in a number of areas.
“I would like to thank each and every one of our team at Ted Baker for their extraordinary commitment over the past few months and I look forward to working with them to deliver this transformation and the exciting opportunities ahead.
“I am confident that our transformation plan will enable us, Ted Baker, to capitalise on our opportunities and deliver value for all of our shareholders.”
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