Monday 24 February 2020 9:34 pm

Ted Baker set to sell London HQ amid accounting crisis

Beleaguered clothes retailer Ted Baker is close to selling its “Ugly Brown Building” headquarters in London in a move that could bolster its balance sheet amid an accounting crisis.

Ted Baker is in talks with the British Airways’ pension scheme, which owns a nearby building, to sell a big stake in the office in north London, according to Sky News.

Read more: Fashion brand Ted Baker bolsters board after torrid year

The sale could raise tens of millions of pounds for the retailer, which is plagued by a £58m accounting gap and last year was engulfed in scandal over the conduct of its chief executive.

However, a source told Sky that the deal could yet fall apart.

Ted Baker is in need of cash due to an accounting scandal that has seen its share price tumble in recent months.

Last month the retailer revealed that an accounting black hole was more than twice as big as initially estimated, coming in at £58m compared to a previous assessment of up to £25m.

Shares have fallen 66 per cent in value over the last six months to stand at 309.6p.

The retailer has not revealed the reason for the accounting gap, and said it would update the market in its preliminary results, although it has not said when they will come.

The accounting scandal came after a torrid period for Ted Banker, which last year parted with founder and chief executive Ray Kelvin after allegations of improper conduct, including unwanted contact. Kelvin denies any wrongdoing.

Ted Baker and British Airways have been contacted for comment.