INTERNATIONAL - Ted Baker’s chief executive and chairman quit on Tuesday as the British fashion retailer warned its full-year profit will fall more than expected and suspended its dividend due to weak Black Friday sales, sending its shares to a 16-year low.
Pressure has mounted on Ted Baker’s management team since it disclosed a week ago that it may have overstated inventory by as much as 25 million pounds ($32 million).
Lindsay Page is leaving after just eight months in charge of Ted Baker, which has been struggling with weak consumer demand and misconduct allegations against its founder and former Chief Executive Ray Kelvin, which he has denied.
“The last 12 months has undoubtedly been the most challenging in our history,” Ted Baker said in a statement as its shares fell as much as 30 percent to 16-year lows.
In contrast to some other British retailers, Ted Baker said its performance during November and the Black Friday sale period was below expectations, leading it to cut its pre-tax profit forecast to a minimum of 5 million pounds.