The independent review of Ted Baker’s stock inventory position is expected to report that value of inventory held on the balance sheet at 26 January 2019 was overstated by £58m – more than double the originally estimated £25m.
The review by independent accountant Deloitte was announced on 2 December after the retailer warned investors it may have overstated the value of its inventory by up to £25m.
The review into Ted Baker’s stock inventory position is almost complete, the retailer said in a statement: “The Deloitte review has now largely concluded and Ted Baker expects to report that the value of inventory held on the Group’s balance sheet at 26th January 2019 was overstated by £58m. This is materially higher than the £20-£25m preliminary assessment announced on 2nd December 2019.”
The overstatement is a non-cash item related to prior years.
The board will update the market when it reports on preliminary results.