* First-half losses widen to 39 mln pounds
* Company has cut 953 jobs
* Expects 16.1 mln pound Brexit hit in worst-case scenario
(Adds job cuts, background, detail on Brexit impact)
By Yadarisa Shabong
Dec 7 (Reuters) - British fashion retailer Ted Baker
cut 953 jobs as coronavirus lockdowns sent first-half losses
soaring, it said on Monday, warning of the potential for further
pain from a no-deal Brexit as the European Union divorce
deadline looms.
Retail stores have been hit hard by coronavirus restrictions
and closures, with job losses running in the thousands, while
the looming end to Britain's Brexit transition period threatens
to disrupt the flow of goods through UK ports unless a new trade
deal can be agreed before the end of the month.
Philip Green's Arcadia retail group last month became the
biggest corporate casualty of the pandemic so far and Debenhams
is set to shut up shop after 242 years.
"Even with some of our legacy issues being amplified by
COVID-19, our balance sheet is materially stronger than we had
envisaged this early in the plan and operational cash flow will
be positive for the full-year," said Ted Baker Chief Executive
Rachel Osborne.
The coronavirus crisis compounded difficulties for the
company, which has been hit by profit warnings, management
changes and an accounting scandal since founder Ray Kelvin
stepped down as CEO in 2019 after misconduct allegations, which
he denies.
Ted Baker has overhauled its management team this year and
raised about 95 million pounds ($126 million) in equity to
bolster its pandemic-hit finances.
Its three-year turnaround plan is expected to deliver 31
million pounds in annual savings, up from the previously
targeted 27 million pounds, the company said on Monday.
With Britain's full exit from the European Union only weeks
away and a trade deal still hanging in the balance, Ted Baker
warned that, in a worst-case scenario, full-year profit could
take a 16.1 million pound hit.
Ted Baker, known for suits, shirts and dresses with quirky
details, said its pretax loss widened to 39 million pounds in
the six months to Aug. 8, against 2.7 million pounds a year
earlier.
($1 = 0.7532 pounds)
(Reporting by Yadarisa Shabong in Bengaluru
Editing by Ramakrishnan M. and David Goodman)