Ted Baker investigation finds £58m phantom stock

image source, Ted Baker

Fashion retailer Ted Baker has said it overstated the value of its stock by £58m, double previous estimates.

Last month it said the figure was up to £25m. The new estimate comes after a review by accountants Deloitte.

Last year, former boss Ray Kelvin stepped down over misconduct claims, while sales and profits have tumbled.

The company did not elaborate on how it came to miscalculate the stock's value, which it has previously said is mainly clothing.

The issue was also mentioned in Ted Baker's last annual report based on information from its auditors, KPMG.

The news from Deloitte's investigation will be embarrassing for rival KPMG as it had said it had uncovered mis-statements but concluded they were too small to affect the fashion label's accounts.

More details will be forthcoming when it published its full-year results.

The problems are the latest setback in a difficult couple of years for the firm.

In March, Mr Kelvin - who had been chief executive since the company's launch in 1988 - resigned over claims he presided over a culture of "forced hugging". He has denied all allegations of misconduct.

The company has also seen its sales, profits and share price tumble. In October, the retailer reported a £23m loss for the six months to 10 August, down from a £24.5m profit last year.

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