Ted Baker has issued another profit warning and revealed the immediate departure of its chief executive and chairman.

The fashion retailer said chief executive Lindsay Page – who took over from founder Ray Kelvin after a scandal saw him quit in March – has been replaced on an interim basis by recently-appointed chief financial officer Rachel Osborne.

Meanwhile, chairman David Bernstein has stepped down, with Sharon Baylay hired as acting chair.

The resignations were announced as Ted Baker scrapped its shareholder dividend and stated it is now expecting annual pre-tax profits of between £5 million and £10 million. This compares with pre-tax profits of £50.9 million the previous financial year.

It attributed the profit warning to worse-than-expected trading in November and over the Black Friday weekend.

Ted Baker said the past year has been the “most challenging in our history”, with a 5.5 per cent drop in sales.

Last week, Ted Baker revealed that its inventory was overstated by between £20 million and £25 million.

The brand hired consultants Alix Partners to carry out a review of operational efficiency, costs and business model as part of an urgent recovery plan.

In March, the business came under pressure after founder and former chief executive Ray Kelvin resigned following allegations of inappropriate behaviour towards staff.

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