Ocado appoints ex-Ted Baker CEO Rachel Osborne as a non-executive director

Ted Baker’s former chief executive is set to join the board of Ocado Group amid speculation that the online grocer faces a takeover.

Rachel Osborne departed Ted Baker earlier this month after three and a half transformative years in charge of the high street fashion brand.

Prior to that, she spent short stints as chief financial officer of Debenhams and Domino’s Pizza, having also previously worked at John Lewis, Kingfisher and French food service operator Sodexo.

Speculation: Last week, Ocado shares skyrocketed when the Times reported that ‘technology heavyweights’ like Amazon were potentially interested in acquiring the company

She will join Ocado as a non-executive director from the beginning of September, and will also serve as a member of its audit and people committees.

Ocado shares skyrocketed by nearly a third last week when the Times reported that ‘technology heavyweights’ like Amazon were potentially interested in acquiring the Hertfordshire-based company.

The group’s share price has plummeted over the past two years as consumers have returned to supermarkets, and cost-of-living issues encourage more Britons to opt for discount retailers.

Short sellers have bet heavily on Ocado, with 6.3 per cent of its stock currently out on loan to hedge funds, the most of any FTSE 100 firm, according to the Financial Conduct Authority.

Ocado Group shares were 2.1 per cent higher at 541.8p on early Tuesday afternoon, approximately 81 per cent below their 2,914p peak in September 2020.

Rick Haythornthwaite, chairman of Ocado, said Osborne’s ‘significant executive experience and strategic approach will be a valuable addition’.

Ocado founder and chief executive Tim Steiner added her ‘commercial mindset will be a real asset as Ocado Group continues to expand globally and seeks to enter into new non-grocery markets’.

Osborne initially joined Ted Baker as finance director in October 2019 but was elevated to acting CEO just two months later when chief executive Lindsay Page resigned following a profit warning.

Page himself spent less than a year as boss, having succeeded founder Ray Kelvin, who had departed over allegations of sexual harassment, which he has denied.

By the time Osborne became the permanent head in March 2020, the London-based business had been forced to shut most of its stores because of the pandemic and admitted to overstating stock inventory by £58million.

Soon after, Osborne launched a turnaround strategy – Ted’s Growth Formula – which included a £105million fundraising, a focus on digital-led expansion, and reducing head office costs.

Sales recovered strongly as the lifting of lockdown restrictions brought shoppers back to high street stores, but the company still made losses in the 2021 and 2022 financial years of £107.7million and £44.1million, respectively.

Ted Baker eventually accepted a £211million takeover by Sports Illustrated and Reebok owner Authentic Brands Group in October last year.

This post first appeared on Dailymail.co.uk