Ted Baker’s former boss Ray Kelvin said to be considering buyout

Shares in Ted Baker have jumped after reports that the fashion retailer’s founder, Ray Kelvin, was considering teaming up with investors to buy the company.

Kelvin quit as chief executive in March in the wake of allegations of inappropriate behaviour towards staff, including forced hugs.

Reports at the weekend said Kelvin, who owns 35% of Ted Baker, was prepared to support a buyout to take the company private and work with its existing management.

Shares in the business closed up 13.5% at 951p on Monday. The share price has more than halved since early January following the publication of two profit warnings, as it described “extremely difficult” trading conditions.

In March 2018 the shares traded at £32.14, valuing Ted Baker at £1.4bn. The company is now valued at about £424m and Kelvin’s stake is worth £148m.

Following Kelvin’s departure his former finance director and associate of more than 20 years, Lindsay Page, has been running the company. David Bernstein, a former chairman of French Connection and the Football Association, is executive chairman.

An acquisition could be backed by private equity firms, which are awash with cash, or a consortium of other investors, according to the Mail on Sunday, which first reported talk of a bid.

Kelvin, 63, is on an extended family holiday in the US and is said to be considering his options after leaving the company he founded more than 30 years ago.

In his farewell message to employees he said he would take time to consider his “next adventure”. He denied all allegations of misconduct, which were first reported by the Guardian, but said he was leaving to remove a distraction from the business.

Sources said any talks about a bid were likely to be informal at this stage.

Spokespeople for Ted Baker and Kelvin declined to comment.