- Huw Hughes
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Ted Baker has announced the value of inventory held on the group’s
balance sheet at 26 January 2019 could be overstated by 58 million pounds,
more than double the amount it estimated when it announced the error in
December.
Last month, the British luxury brand announced it had overstated the
value of its inventory and would be launching a comprehensive review of how
the mistake was made.
At the time, the brand estimated the overstatement to be to the value of
20 to 25 million pounds and said it believed “any adjustment to inventory
value will have no cash impact and will relate to prior years.”
The company has since appointed Deloitte as independent accountants to
undertake a comprehensive review of the brand’s stock inventory position,
with the review largely concluding that the actual value of inventory on
the group’s balance sheet was overstated by 58 million pounds.
“As previously stated, the overstatement is a non-cash item and related
to prior years,” the brand said.
Photo credit: Ted Baker, Facebook
