High street fashion retailer Ted Baker has appointed Freshfields Bruckhaus Deringer to conduct an independent review into the company's finances, after the board discovered that it had overstated its balance sheet.

Ted Baker said in a trading statement on the London Stock Exchange this morning that the Magic Circle firm will "undertake a comprehensive review of this issue", adding that the Ted Baker board "estimates an impact on value" of between £20 million and £25 million.

Freshfields will report to a sub-committee chaired by independent director Sharon Baylay  throughout the review process, the statement continued.