Ted Baker is set to raise £95 million from investors to slash its debt as the troubled fashion brand embarks on a major turnaround strategy.
The clothing company revealed its Ted’s Formula for Growth strategy, which it hopes will revitalise sales as coronavirus restrictions unwind.
It said the cash boost will go towards stabilising its finances and supporting the turnaround plan.
The fundraiser came as the retail group revealed that it slumped to a £79.9 million loss for the year to January, from a £30 million profit a year earlier.
Over the past six 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 areasRachel Osborne, chief executive
Meanwhile, total revenue for the year dipped by 1.4% to £630.5 million.
Ted Baker said trading has been “significantly impacted” by the coronavirus pandemic in the latest period, with sales falling by more than a third.
Company revenues slid 36% for the 14 weeks from January 26 to May 2, as it was impacted by temporary store closures.
Online retail sales jumped 50% over the period, with a 78% rise in the six weeks from March 22, it said.
The company said it will increase its focus on online operations and has also secured £138.4 million in savings through a recent cost-cutting programme.
Rachel Osborne, chief executive of Ted Baker, said: “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 six 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.”