Rumors about takeover target Ocado names ex-CEO of Ted Baker Rachel Osborne as non-executive director
- Rachel Osborne was CEO of fashion brand Ted Baker for three and a half years
- Before Ted Baker, Osborne was chief financial officer of Debenhams and Domino’s Pizza
- Ocado shares have fallen over the past two years on cost-of-living concerns
The former CEO of Ted Baker will join the board of directors of Ocado Group amid speculation that the online grocer is facing a takeover.
Rachel Osborne left Ted Baker earlier this month after three and a half transformative years at the head of the fashion brand.
Prior to that, she served brief periods as chief financial officer of Debenhams and Domino’s Pizza, having previously worked for John Lewis, Kingfisher and French food service operator Sodexo.
Speculation: Ocado shares skyrocketed last week as the Times reported that “technology heavyweights” like Amazon may be interested in acquiring the company
She will join Ocado in early September as a non-executive director and will also serve on the audit and personnel committees.
Ocado shares shot up nearly a third last week when the Times reported ‘technology heavyweights’ as Amazon may have been interested in acquiring the Hertfordshire-based company.
The group’s share price has fallen sharply over the past two years as consumers return to supermarkets, and cost-of-living issues are encouraging more Britons to turn to discount stores.
Short sellers have bet heavily on Ocado, with 6.3 percent of its shares currently on loan to hedge funds, the highest of any FTSE 100 company, according to the Financial Conduct Authority.
Ocado Group Shares were 2.1 percent higher at 541.8 p on the early Tuesday afternoon, about 81 percent below their peak of 2,914 p in September 2020.
Rick Haythornthwaite, chairman of Ocado, said Osborne’s “significant managerial experience and strategic approach will be a valuable addition.”
Tim Steiner, founder and general manager of Ocado, added that her “commercial mindset will be a real asset as Ocado Group continues to expand globally and enter new non-grocery markets.”
Osborne initially joined Ted Baker in October 2019 as CFO, but was elevated to acting CEO just two months later when CEO Lindsay Page stepped down following a profit warning.
Page himself was in charge for less than a year after succeeding founder Ray Kelvin, who left over allegations of sexual harassment, which he has denied.
By the time Osborne took over as permanent head in March 2020, the London-based company had been forced to close most of its stores due to the pandemic and admitted it had overstated inventory stock by £58m.
Shortly afterwards, Osborne launched a turnaround strategy – Ted’s Growth Formula – which included a £105m fundraising, a focus on digital expansion and cutting head office costs.
Sales rebounded strongly as the lifting of lockdown restrictions returned shoppers to high street stores, but the company still recorded losses of £107.7m and £44.1m respectively in fiscal years 2021 and 2022 .
Ted Baker finally accepted a £211 million takeover from Sports Illustrated and Reebok owner Authentic Brands Group in October last year.