Ted Baker shares soar as Ray Kelvin considers backing buy-out
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Shares in Ted Baker soared this morning following reports that the luxury retailer’s founder Ray Kelvin would back a private equity buyout of the firm, months after he resigned amid allegations of sexual harassment.
The retailer’s share price was up more than 15 per cent after it was reported that Kelvin had made enquiries about taking the firm private.
Read more: Ted Baker share plunge fails to attract buyers
Kelvin, who was forced to resign as chief executive earlier this year following allegations of “forced hugging”, no longer sits on the board but still owns around a 35 per cent stake in the company. Kelvin denied all allegations of misconduct.
The Mail on Sunday reported that Kelvin had made “discreet” enquiries about a potentially taking the FTSE 250 retailer private.
The struggling firm saw shares slide 25 per cent last month after it issued a trading update warning that profit for the year ending 25 January 2020 would be up to £20m less than previously estimated.
Read more: Ted Baker warns on profits in ‘difficult trading conditions’
Ted Baker blamed the negative outlook on “extremely difficult trading conditions”, including consumer uncertainty and increased promotional activity.
Kelvin founded Ted Baker in Glasgow in 1987 before it listed on the London Stock Exchange ten years later.