March 4, 2019 / 9:08 AM / 19 days ago

BUZZ-Street View: Time for Ted Baker to move on

** British fashion retailer Ted Baker Plc’s founder and CEO Ray Kelvin resigns amid misconduct allegations related to his hugging of business colleagues

** Company in December announced an independent investigation after claims against Kelvin’s behavior surfaced

** “I’ve decided that the right thing to do is to step away from Ted and allow the business to focus on being the outstanding brand it is so it can face 2019 with fresh energy and renewed spirit” - Kelvin

** Shares now positive after falling more than 5.7 pct in early trade

TIME FOR TED TO MOVE ON FROM KELVIN

** Jefferies says it is a sad end for Kelvin’s 32 years building Ted into a global brand ... but Ted clearly needs to draw a line under Ray’s behavior and move forward

** Jefferies: Hope business is now ‘clean’ and reiterates rating at “hold”

** “We expect new management will look to review the balance of Ted’s stores, concessions and online global operations and also the price competitiveness of the brand given inflating costs” - Jefferies

** It’s never good to lose a CEO under these circumstances, and that’s particularly the case with Ray Kelvin who was Ted Baker’s founder and boss for 32 years - Hargreaves Lansdown analyst Laith Khalaf

** Liberum analyst Adam Tomlinson says resignation and departure of Kelvin is unfortunate but understandable

** Liberum sees minimal disruption and no changes to the group’s long-term prospects

FOUNDER - DNA LINK

** There’re always concerns around whether a founder-led brand loses some of its DNA when the founder leaves - Peel Hunt analyst John Stevenson

** Kelvin no longer critical in terms of day-to-day running of the business - Stevenson

Reporting by Karina Dsouza in Bengaluru

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