Fashion retailer Ted Baker cut 953 jobs as coronavirus lockdowns sent first-half losses soaring, it said today, warning of the potential for further pain from a no-deal Brexit as the European Union divorce deadline looms.
Retail stores have been hit hard by coronavirus restrictions and closures, with job losses running in the thousands.
The looming end to Britain's Brexit transition period also threatens to disrupt the flow of goods through UK ports unless a new trade deal can be agreed before the end of the month.
Philip Green's Arcadia retail group last month became the biggest corporate casualty of the pandemic so far and Debenhams is set to shut up shop after 242 years.
"Even with some of our legacy issues being amplified by Covid-19, our balance sheet is materially stronger than we had envisaged this early in the plan and operational cash flow will be positive for the full-year," chief executive Rachel Osborne said.
The coronavirus crisis has compounded difficulties for the company.
It has been hit by profit warnings, management changes and an accounting scandal since founder Ray Kelvin stepped down as CEO in 2019 after misconduct allegations, which he denies.
Ted Baker has overhauled its management team this year and raised about £95m in equity to bolster its pandemic-hit finances.
Its three-year turnaround plan is expected to deliver £31m in annual savings, up from the previously targeted £27m, the company said today.
With Britain's full exit from the European Union only weeks away and a trade deal still hanging in the balance, Ted Baker warned that, in a worst-case scenario, full-year profit could take a £16.1m hit.
Ted Baker, known for suits, shirts and dresses with quirky details, said its pretax loss widened to £39m in the six months to August 8, compared to £2.7m a year earlier.
