Struggling UK fashion retailer Ted Baker has raised GBP105m (US$131.2m) in capital to reduce its debt and invest in new efforts to try to turn the business around after posting a near GBP80m annual loss earlier this month.
On 1 June, the company said it wanted to raise GBP95m through a placing and open offer of newly-issued ordinary shares, and up to a further GBP10m through an offer for subscription. They were to be issued at an offer price of 75 pence per share.
In a filing published today (18 June), Ted Baker announced the results of the capital raising and said it remains conditional on the approval of shareholders at the company’s General Meeting to be held later today.
Earlier this month, the company revealed a full-year pre-tax loss of GBP79.9m for the 52 weeks to 25 January, from earnings of GBP30.7m in the prior year. Underlying gross margin narrowed to 55.6% from 59.8%.
Total revenue, meanwhile, was down 1.4% to GBP630.5m due to significant discounting across the apparel industry, particularly in the UK, in response to weak consumer spending and a channel shift to online. Retail revenues fell 4.6% to GBP439.9m.
The full-year results cover the period before the coronavirus pandemic took hold, but Ted Baker said its annual performance was hit by internal disruption, including the December departure of long-time non-executive director Ron Stewart, just a week after the UK fashion retailer saw its CEO and chairman Lindsay Page step down after just nine months in the role.