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Ted Baker strikes £78mln sale-leaseback deal for headquarters amid coronavirus uncertainty

Published: 09:06 23 Mar 2020 GMT

Ted Baker plc - Ted Baker strikes £78mln sale-leaseback deal for headquarters amid coronavirus uncertainty

Ted Baker plc (LON:TED) has agreed a sale-and-leaseback deal for its registered and head office, banking £78.75mln of funds amid the turmoil caused by the Covid-19 coronavirus pandemic.

The clothes retailer, which has shut its stores due to coronavirus, told investors that it has sold the property - called ‘The Ugly Brown Building’ – to a British Airways Pension Trustees Limited.

A short-term lease has been signed and Ted Baker will have an option to take a long-term lease.

Ted Baker noted that the deal marks the last step in its strategic asset review.

"The sale and leaseback of the Ugly Brown Building and future relocation of our head office are significant developments resulting from the broad asset review we have undertaken in recent months,” said Rachel Osborne, acting Ted Baker chief executive.

READ: Ted Baker to axe 102 jobs as part of cost review

“This transaction and the agreed additional financing provides further headroom and flexibility, which will support the delivery of our transformation strategy.”

The company noted that 384 of its 416 global stores are presently closed, representing some 68% of its retail sales.

At the same time, it described its eCommerce channel as “resilient” and said online sales are up 16% in the financial year to date (past 8 weeks).

It told investors that it is too early to provide meaningful guidance for the current financial year whilst noting that, in-line with prior communications, it anticipates pre-tax profit of £5mln to £10mln for the year ended 26 January 2020.

Osborne added: “The spread of COVID-19 has led to some unprecedented events around the world and uncertainty for our business and our people.

“We welcome the support packages so far announced by Governments and continue to focus on keeping our customers and employees safe and all of our stakeholders informed. By doing this, and by continuing to transform the way the business operates guided by our strategic priorities, we remain confident we can realise Ted's exciting, long-term potential."

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