Ted Baker (LON:TED) shares plunged on Wednesday after the high-end fashion retailer said that it had overstated the value of its inventory.
Shares in the company were trading almost 6% lower on Wednesday.
At the start of December, Ted Baker said that it would appoint independent accountants to conduct a review of its stock inventory position.
The review, which was conducted by Deloitte, found that the value of Ted Baker’s inventory was overstated by £58 million.
“The Deloitte review has now largely concluded and Ted Baker expects to report that the value of inventory held on the Group’s balance sheet at 26th January 2019 was overstated by £58 million,” the company said in a statement.
“This is materially higher than the £20-25m preliminary assessment announced on 2nd December 2019,” the company said.
The company will next update the market with its preliminary results.
Additionally in December, Ted Baker shares plunged after the clothing brand issued a profit warning.
It said that the past year had been “the most challenging in our history”.
Meanwhile, Lindsay Page resigned as Chief Executive Officer.
The UK’s retail sector faced difficulty last year as high street names battled with gloomy trading conditions.
Indeed, the British Retail Consortium said that 2019 was “the worst year on record” for the sector.
Shares in Ted Baker plc (LON:TED) were down on Wednesday, trading at -5.96% as of 10:48 GMT.