Ray Kelvin, the founder of troubled fashion brand Ted Baker has backed a plan to raise £95 million to avoid seeing his majority shareholding being wiped out.
The 75p-a-share raising, advised on by Goldman Sachs and Liberum, represents a deep discount to Friday’s 153.3p closing price. The shares, down 90 per cent over the last year, fell a further 10 per cent to 137p, valuing Ted at just £62 million.
The funds will be used to cut debts and help the company through the Covid crisis, with all of its 201 stores closed until at least June 15. They would allow it to invest behind its inherent strengths, which it said were a strong brand and diverse distribution via its own shops, wholesaling and licensing, as well as its wide product ranges and wide geographical spread.