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Reuters People shelter under umbrellas as they pass a Ted Baker store in London
Shares in Ted Baker took another beating on Monday after the beleaguered British retailer disclosed its overvalued inventory.
Ted Baker shares slumped 10% as the retailer said that the value of its inventory had been overstated by as much as £25 million. The company said it is hiring the law firm Freshfields Bruckhaus Deringer and an as-yet-unnamed accounting firm to conduct an independent review. KPMG audited the company’s results in 2018.
The share price for Ted Baker TED, -9.61%, which has 560 stores and concessions worldwide, has crumbled by 80% this year. It reported a £23 million loss before tax in the 28 weeks to Aug. 10, with revenue falling 2.5% when adjusted for currency swings.
The FTSE 100 UKX, -0.27% meanwhile reversed early gains and traded lower, falling 0.31% to 7323.70.
The announcement by U.S. President Donald Trump of fresh tariffs on Brazil and Argentina took away earlier gains after Chinese economic data was better than expected.
Ocado Group OCDO, -7.06% was the biggest mover in the FTSE 100, dropping 7%, as the online grocer announced a convertible bond to raise about £500 million.
