(Alliance News) - Lenders of embattled retailer Ted Baker PLC have called in advisors to assess the firm, Sky News reported on Wednesday.
Lenders, including Barclays PLC and Royal Bank of Scotland PLC, have called upon US-based restructuring experts FTI Consulting Inc to review the business, according to the news agency
The review could lead to the lenders offering more stringent terms when providing debt to the retail chain.
https://news.sky.com/story/ted-baker-lenders-call-for-help-at-ailing-retail-chain-11903703
A difficult year for Ted Baker was exacerbated further in December, after it chopped its full-year pretax profit guidance after "lower than anticipated margins and sell through" over November and the Black Friday period.
The once high-flying high street store chain downgraded its annual pretax profit guidance to a minimum GBP5 million and a maximum of GBP10 million. For the year ended January 26, 2019, the company had posted pretax profit of GBP50.9 million.
In December, the company also announced the immediate departures of Lindsay Page as chief executive and David Bernstein as executive chair.
Page became CEO after a brief stint as acting chief executive after the firm's founder Ray Kelvin resigned from the post.
Kelvin had taken a voluntary leave of absence in December 2018, after he was accused by Ted Baker staff of forced "hugging" and inappropriate touching and comments.
Shares in the company were 0.2% lower at 403.20 pence each in London on Wednesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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Barclays (BARC)