Model store Ted Baker has stated it will have overstated the worth of its inventory via between £20m and £25m.
Legislation company Freshfields Bruckhaus Deringer is to hold out a evaluate, and impartial accountants may also be appointed to research.
Stocks in Ted Baker fell 10% as analysts described the scoop as “lower than very best”
This yr, former boss Ray Kelvin stepped down over misconduct claims, whilst gross sales and earnings have tumbled.
In the most recent setback, Ted Baker stated it will have accounted for as much as £25m of inventory, basically clothes, on its stability sheet that didn’t exist.
The corporate stated in a observation: “Ted Baker is dedicated to making sure the impartial evaluate is done in an effective and clear way and can replace the marketplace as suitable. While the evaluate is ongoing, the corporate is not going to remark additional.”
Ted Baker added, on the other hand, that it didn’t be expecting any money have an effect on from the overstatement of stock.
The issues are the most recent setback in a troublesome yr for the company.
In March, Mr Kelvin – who were leader government because the corporate’s release in 1988 – resigned over claims he presided over a tradition of “compelled hugging”. He has denied all allegations of misconduct.
The corporate has additionally observed its gross sales, earnings and percentage value tumble. In October, the store reported a £23m loss for the six months to 10 August, down from a £24.5m benefit final yr.
Retail analysts at Liberum stated: “As of late’s newest information from Ted Baker, in regards to the overstatement of final yr’s stock worth, is lower than very best.”
The corporate is because of submit its newest buying and selling subsequent week.