Just spotted this update with more bad news.
22 Jan 2020 07:00 Update on Independent Review of Inventory
… 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. As previously stated, the overstatement is a non-cash item and related to prior years.
For context:
03 Oct 2019 Interim Results for the 28 weeks ended 10 August 2019, Page 12
Inventories £209.6m
Net assets £210.6m
The update and original announcement say it relates to “prior years”. Do we think that means the recent £209.6m inventories figure is accurate? I’m struggling to see how it can be, if in December they were still over 2x out. I’m still keeping an eye on this, but they are making it hard to want to buy this.