Ted Baker has sold its London headquarters in a £79m deal and increased its loan facility after warning that coronavirus-related store closures have shuttered the majority of its global store estate.
The fashion retailer has entered into a deal with a British Airways Pension Trustees unit to sell the entire issued share capital of its unit for a sale, with founder and 35% shareholder Ray Kelvin voting in favour of the sale.
Ted Baker has also agreed to increase its loan facility by £13.5m until December 18, which the retailer has said will provide “further financial flexibility while the group implements its transformation programme”.
The retailer confirmed today that 384 stores across its 416-strong global store estate are closed due to coronavirus, representing 68% of its overall sales.
Although Ted Baker said its online sales have been resilient in this time and are up 16% year on year, the business is unable to provide “meaningful guidance” for its 2021 financial year at this stage as a result of store closures.
It said it will provide guidance alongside its preliminary results in May, and expects profits for its current financial year to be in the range of £5m-£10m.
The retailer is also understood to be on the cusp of appointing Easyjet chair and former Next chair John Barton as its new chair, according to The Times.
Acting chief executive Rachel Osborne said: “The sale and leaseback of the Ugly Brown Building and future relocation of our head office are significant developments resulting from the broad asset review we have undertaken in recent months.
“This transaction and the agreed additional financing provides further headroom and flexibility, which will support the delivery of our transformation strategy.
“The spread of Covid-19 has led to some unprecedented events around the world and uncertainty for our business and our people. We welcome the support packages so far announced by governments and continue to focus on keeping our customers and employees safe and all of our stakeholders informed. By doing this, and by continuing to transform the way the business operates guided by our strategic priorities, we remain confident we can realise Ted’s exciting, long-term potential.”
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