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You can find the current article at its original source at https://www.theguardian.com/business/2018/dec/06/ted-baker-law-firm-investigate-forced-hugging-allegations-ray-kelvin
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| Version 1 | Version 2 |
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| Ted Baker boss to stay on as law firm starts 'forced hugging' inquiry | Ted Baker boss to stay on as law firm starts 'forced hugging' inquiry |
| (35 minutes later) | |
| Ted Baker boss Ray Kelvin will continue to work in the business during an investigation into allegations that the fashion retailer’s founder and chief executive forced hugs and kisses on employees. | Ted Baker boss Ray Kelvin will continue to work in the business during an investigation into allegations that the fashion retailer’s founder and chief executive forced hugs and kisses on employees. |
| Lindsay Page, chief operating officer, said it was “business as usual” at the company as he announced disappointing trading over the last three months, including a 3% fall in sales at established stores. | |
| The company confirmed it has appointed the law firm Herbert Smith Freehills to conduct an independent external investigation into the allegations. Page said there was no set timetable on when it would report back . | The company confirmed it has appointed the law firm Herbert Smith Freehills to conduct an independent external investigation into the allegations. Page said there was no set timetable on when it would report back . |
| “It’s an independent investigation,” he said, indicating that Herbert Smith would be given as much time as required. | “It’s an independent investigation,” he said, indicating that Herbert Smith would be given as much time as required. |
| The firm will report to a committee of the non-executive directors that will be chaired by Sharon Baylay, a former BBC Worldwide and Microsoft executive who joined Ted Baker’s board this summer. | The firm will report to a committee of the non-executive directors that will be chaired by Sharon Baylay, a former BBC Worldwide and Microsoft executive who joined Ted Baker’s board this summer. |
| The company’s share price has fallen by more than a fifth since Sunday, when the Observer published the allegations, which include “forced hugging”, making “sexual innuendos” and “stroking people’s necks”. | The company’s share price has fallen by more than a fifth since Sunday, when the Observer published the allegations, which include “forced hugging”, making “sexual innuendos” and “stroking people’s necks”. |
| On Thursday, shares recovered slightly, rising just over 4% despite house broker Liberum cutting its annual profit forecasts for Ted Baker by just over 3% to £74.3m as it anticipated lower sales growth. | On Thursday, shares recovered slightly, rising just over 4% despite house broker Liberum cutting its annual profit forecasts for Ted Baker by just over 3% to £74.3m as it anticipated lower sales growth. |
| The share price rose on relief that trading had not been worse for Ted Baker during a period of unseasonably warm weather which has affected fashion retailers across the high street. Some key distributors, particularly House of Fraser and Debenhams, encountered serious difficulties. | The share price rose on relief that trading had not been worse for Ted Baker during a period of unseasonably warm weather which has affected fashion retailers across the high street. Some key distributors, particularly House of Fraser and Debenhams, encountered serious difficulties. |
| “Ted’s positioning as a global lifestyle brand leaves it far better placed than most in the more challenging environment that currently persists,” Liberum said. | “Ted’s positioning as a global lifestyle brand leaves it far better placed than most in the more challenging environment that currently persists,” Liberum said. |
| In a trading update, Ted Baker reported a 0.2% fall in revenues at constant currencies for the 16 weeks to 1 December, its third quarter. Wholesale sales fell 6.5% as expected due to the timing of deliveries, which was largely offset by a better retail sales performance, up 2.3% as it opened 5.2% increase more space. Online sales surged 18%. | In a trading update, Ted Baker reported a 0.2% fall in revenues at constant currencies for the 16 weeks to 1 December, its third quarter. Wholesale sales fell 6.5% as expected due to the timing of deliveries, which was largely offset by a better retail sales performance, up 2.3% as it opened 5.2% increase more space. Online sales surged 18%. |
| Page said trading had improved in the last eight weeks as cold weather had kicked in, helping to lift sales of coats and knitwear, which had been subdued during the warmer than usual September and early October across the UK, Europe and the US east Coast. | Page said trading had improved in the last eight weeks as cold weather had kicked in, helping to lift sales of coats and knitwear, which had been subdued during the warmer than usual September and early October across the UK, Europe and the US east Coast. |
| In the last eight weeks of the period, retail sales climbed 4% as the weather became more typical for the season. The difficult autumn came after the summer heatwave also hit sales and profits, forcing Ted Baker to discount clothes to pull in shoppers. | In the last eight weeks of the period, retail sales climbed 4% as the weather became more typical for the season. The difficult autumn came after the summer heatwave also hit sales and profits, forcing Ted Baker to discount clothes to pull in shoppers. |
| Tom Stevenson, an investment director at Fidelity Personal Investing’s share dealing service, said: “It’s not the health of the sales performance that’s driving Ted Baker’s shares at the moment, of course, but rather the ongoing investigation into the alleged inappropriate behaviour of the company’s founder and driving force, Ray Kelvin. | Tom Stevenson, an investment director at Fidelity Personal Investing’s share dealing service, said: “It’s not the health of the sales performance that’s driving Ted Baker’s shares at the moment, of course, but rather the ongoing investigation into the alleged inappropriate behaviour of the company’s founder and driving force, Ray Kelvin. |
| “The shares have fallen so far so fast because investors fear that without Kelvin the company will be less able to counter the headwinds blowing through the beleaguered high street.” | “The shares have fallen so far so fast because investors fear that without Kelvin the company will be less able to counter the headwinds blowing through the beleaguered high street.” |
| Ted Baker warned of tough trading conditions in the UK, exacerbated by the recent collapse of House of Fraser. More than 1,000 suppliers were left out of pocket when the department store chain went bust in August. Ted Baker, which runs 30 concessions in the department store chain, was owed £600,000. House of Fraser was immediately bought out of administration by Mike Ashley’s Sports Direct. | Ted Baker warned of tough trading conditions in the UK, exacerbated by the recent collapse of House of Fraser. More than 1,000 suppliers were left out of pocket when the department store chain went bust in August. Ted Baker, which runs 30 concessions in the department store chain, was owed £600,000. House of Fraser was immediately bought out of administration by Mike Ashley’s Sports Direct. |
| Page said Ted Baker was “watching things carefully” at House of Fraser and would “see how things develop” before making a decision about its long-term future with the department store. | Page said Ted Baker was “watching things carefully” at House of Fraser and would “see how things develop” before making a decision about its long-term future with the department store. |
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