Ted Baker has revealed that the value of stock held on its balance sheet has been overstated by between £20m and £25m.
The fashion retailer said the valuation was based on preliminary analysis but “any adjustment to inventory value will have no cash impact and will relate to prior years”.
Ted Baker has hired law firm Freshfields Bruckhaus Deringer LLP and will bring in independent accountants to undertake a review of the matter.
They will report to a board sub-committee, chaired by independent director Sharon Baylay.
The retailer said: “All costs and fees associated with completing the independent review will be expensed in the period incurred and clearly identified as such.
“Ted Baker is committed to ensuring the independent review is completed in an efficient and transparent manner and will update the market as appropriate. Whilst the review is ongoing, the company will not comment further.”
The retailer will go ahead with a scheduled trading update next week.
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