A group of lenders for troubled UK fashion retailer Ted Baker are understood to have hired advisers to carry out an independent review of the business.
According to Sky News, Ted Bakers banking syndicate, which includes Barclays and Royal Bank of Scotland, has appointed FTI Consulting for the review.
The move follows a month of departures for the struggling business, which is expected to disclose details of its Christmas trading in a few weeks.
In December, long-time non-executive director, Ron Stewart, stepped down, a week after the departure of its CEO and chairman, Lindsay Page, after just nine months in the role. The group’s executive chairman David Bernstein also stepped down from his post.
Last month, Ted Baker warned again on full-year profit, after lowering its guidance in June, saying it was now likely to be between GBP5-10m (US$6.6-13.1m), compared with a pre-tax profit last year of GBP50.9m. The group cited trading “below expectations” in November including on Black Friday and said it anticipated “difficult trading conditions” to continue.
FTI Consulting’s review is expected to take several weeks to conclude, according to Sky News, and could result in the lenders further tightening the terms on which they provide debt to the fashion retailer.
FTI Consulting declined to comment when contacted by just-style. Ted Baker did not return a request for comment.