High Street fashion chain Ted Baker is facing administration, a move that could jeopardize hundreds of jobs. Authentic Brands Group, the owner of Ted Baker since 2022, cited irreparable damage caused during a partnership with another firm as the reason for this decision. Despite the impending administration, Ted Baker will continue to operate and fulfill customer orders, according to the US group.
Authentic Brands Group is currently in talks with potential buyers for the Ted Baker brand. The fashion retailer employs about 975 people and operates 46 stores, along with an e-commerce platform and department store concessions. The company did not disclose the number of potential job losses resulting from the administration.
John McNamara, Authentic Brands Group’s chief strategy and transition officer, expressed regret over the situation for Ted Baker employees and stakeholders. However, he reassured customers that the brand will continue trading online and in stores.
The woes for Ted Baker began during a partnership with Dutch firm AARC, which led to significant financial arrears and ultimately contributed to the current situation. The partnership ended in January, but the fallout has now led to the impending administration.
Founded in 1988 as a menswear brand in Glasgow, Ted Baker expanded globally with stores in the UK and US, as well as concessions in department stores. The brand also has licensing agreements for stores in Asia and the Middle East.
Notably, Authentic Brands Group acquired Ted Baker in a £211 million deal two years ago. Following a period of instability, the decision to appoint administrators, likely restructuring firm Teneo, underscores the challenges faced by the company.
In a twist of fate, Ted Baker also faced controversy in 2019 when founder Ray Kelvin stepped down amid allegations of misconduct, including “forced hugging.” Despite denying the allegations, Kelvin’s departure was followed by the resignation of his successor and chairman amid a profit warning and plunging shares due to an accounting error.
Kelvin later returned to the company in an advisory capacity, but the turbulent history of Ted Baker sets the stage for its uncertain future as it navigates the challenges of administration.
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