British clothing brand Ted Baker has undertaken a £105 million fundraising effort to support the company and implement a new growth strategy during the coronavirus pandemic. As a result, founder Ray Kelvin’s stake in the company has been reduced by 55%. In a share placing and offer for subscription, Ted Baker raised £95 million and an additional £10 million, respectively. Kelvin purchased only £3.5 million of new shares, resulting in a dilution of his stake from 35% to 15.8%. Investment firm Toscafund now holds the largest stake in the company, with 26.4%. This fundraising initiative follows a challenging period for Ted Baker, which reported a pre-tax loss of £79.9 million and a decline in revenues. The objective of the fundraising is to support Ted Baker’s new “Formula for Growth” strategy, led by CEO Rachel Osborne. This strategy focuses on reenergizing product and brand, prioritizing digital expansion, and reducing costs.

Useful links:

– Ted Baker official website: https://www.tedbaker.com/
– The Guardian article on Ted Baker’s fundraising effort: https://www.theguardian.com/business/2020/jun/03/ted-baker-founder-stake-cut-to-16-in-105m-fundraising-effort