Embattled UK brand Ted Baker has revealed an accounting issue is twice as big as initially estimated.
The company said the value of stock on its balance sheet was overstated by £58 million as at January 26 2019, more than double its preliminary estimate of up to £25 million.
A review by business consultants Deloitte is near completion with further updates expected in late March.
The accounting scandal was revealed in December following the appointment of a new finance chief Rachel Osborne.
Osborne was later named acting CEO that month following the shock exit of Lindsay Page.
Ted Baker has stores across Victoria, South Australia, New South Wales and Queensland.
It has been a tough year for the brand; with misconduct allegations against founder Ray Kelvin, profit warnings and the suspension of dividend payments.
Kelvin resigned last year following allegations of inappropriate behaviour towards staff.
The allegations of misconduct, which included “forced hugs” and ear-kissing, saw him step down from the role last March.