Ted Baker founder Ray Kelvin has seen his stake in the retailer fall by 55 per cent after investment firm Toscafund used a share listing to nearly double its stake to 26.4 per cent, making it the largest stakeholder.

Yesterday, Ted Baker launched an open offer, looking to raise £95 million to help stabilise its finances and support a turnaround plan.

According to The Guardian, Kelvin bought £3.5 million worth of new shares in the fundraising round, which diluted his stake to 15.8 per cent - down from around 35 per cent.

The fashion retailer reported an annual loss of £79.9 million in its full year results - compared to a profit of £30.7 million the previous year.

It also detailed the new Ted’s Formula For Growth strategy, which centres around the fundraising - with shares being offered at 75 pence.

The financial report for the period ending 25 January, showed full-year sales falling 1.4 per cent to £630.5 million, although online retail sales doubled during the period, with a 78 per cent rise in the six weeks from 22 March.

Ted Baker stated that since the start of the current financial year, trading has been “significantly impacted” by the Coronavirus, with overall sales falling 36 per cent for the 14 weeks to 2 May.

Since the departure of founder Kelvin after a workplace behaviour scandal last year, the brand has suffered several profit warnings, internal investigations and a significant stock overstatement.

The turnaround strategy is focused on three main areas: stabilising the business; driving growth through revitalisation and drawing new customers; and operational excellence.

Ted Baker stated it would increase its focus on online operations and has secured £138.4 million in savings through a recent cost-cutting programme.

Chief executive Rachel Osborne explained: “Today we are excited to launch Ted’s Formula For Growth, a comprehensive strategy for the Ted Baker brand which is supported by a significant recapitalisation of the business, that strengthens our position and enables us to both execute that transformation, and navigate through the disruption caused by COVID-19.

“Over the past six months our new executive team have pulled together and undertaken a thorough review of the business, identified key opportunities and acted decisively in a number of areas.”

Just before the UK lockdown was implemented, along with the closure of most of its stores worldwide due the pandemic, Ted Baker raised £13.5 million from lenders, along with cash from the sale and leaseback of its London headquarters.

The company will begin gradually reopening its stores in England from 15 June.

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