(Sharecast News) - Ted Baker has raised £105m to help see it through the current Covid-19 crisis, the beleaguered fashion retailer said on Thursday.
The chain said that based on valid applications and commitments received, gross proceeds had been determined to be £105m, following a share placing which raised £95m and a £10m offer for subscription.
The money will be used to help Ted Baker survive the immediate impact of the Covid-19 pandemic and lockdown, which has closed department store concessions and stores, but is also part of a wider plan to overhaul the long-term direction of the business.
Announcing the placing earlier this month, Ted Baker said: "The capital raising forms part of a holistic financing package and broader strategic transformation plan to navigate the challenges of the global coronavirus pandemic and return the company to profitable growth."
Before the Covid-19 outbreak, sales and demand in 2020 were already struggling because of what Ted Baker called "very difficult trading conditions, amplified by heightened levels of consumer uncertainty across many of its global markets". It was also rocked in 2019 by an inventory overstatement that cost it £58m.
In the year to 25 January, underlying pre-tax profits collapsed 92% to £4.8m, while this year, revenues have tumbled 36% between January and the start of May.
The refinancing means that founder and former boss Ray Kelvin has seen his stake slashed from 55% to 15.8%, while investment firm Toscafund has become the firm's biggest shareholder and now owns 26.4%.
Earlier this year, the company struck a £79m sale and leaseback deal for its London head office.
25 Apr 2023 14:14
Ted Baker CEO heading for the exit after ABG takeover - report
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