Retailer Ted Baker has said that it may have overstated the value of the stock on its balance sheet by £20 million to £25 million.
The company has appointed legal firm Freshfields Bruckhaus Deringer and will be appointing independent accountants, to undertake a comprehensive review.
The board at the company said that any adjustment to inventory value will have no cash impact and will relate to prior years.
Last month the omni-channel retailer said that it had seen e-commerce sales fall 1.3% during in what it described as a “challenging” half-year in the sector.
