Ted Baker jobs at risk as administrators appointed
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The BBC News' business correspondent wrote an article.
Ted Baker, a popular fashion retailer located on High Street, is on the brink of being declared bankrupt. This unfortunate news could potentially lead to several hundred employees losing their jobs.
The company called Authentic Brands Group, who has owned the Ted Baker brand since 2022, stated that the harm caused during a partnership with another firm was insurmountable.
The US group has announced that Ted Baker will keep operating and fulfilling their customers' orders.
Authentic is currently having "advanced talks" with various interested parties who are potential buyers for the Ted Baker brand, as stated by the brand.
Ted Baker employs nearly 1,000 individuals and operates a total of 46 physical outlets, as well as an online retail store and concessions within several department stores.
Authentic's statement did not reveal any information about the quantity of job cuts.
John McNamara, the chief strategy and transition officer of Authentic Brands Group, expressed his hope that the Ted Baker employees and stakeholders could have had a more positive outcome.
He stated that it can hopefully provide some comfort to customers that Ted Baker will keep operating both online and in their physical stores.
According to him, NODL - the holding company of Ted Baker in the UK and Europe - couldn't pay their debts on time. They had accumulated a large amount of arrears while working with Dutch company AARC, and it was impossible to recover from the harm it caused.
Ted Baker's retail collaboration with AARC in Europe, which encompassed both brick-and-mortar stores and online sales, wrapped up in January.
In 1988, Ted Baker was established as a brand for men's attire in Glasgow. With time, the company expanded its presence and currently has various stores located in UK and US, along with sections within department stores.
Additionally, it has established arrangements for licensing stores situated in urban areas within Asia and the Middle East.
Authentic is the proud owner of a variety of brand names such as Reebok, Hunter and Juicy Couture. Recently, they also acquired Ted Baker for £211m just two years ago.
After a period of prolonged instability within the company, the decision has been made to appoint administrators.
During 2019, Ray Kelvin, the creator of Ted Baker, stepped down from his position after being accused of wrongdoings, such as engaging in "required embraces".
According to reports, Mr Kelvin refuted the accusations made against him. Allegedly, he was accused of hugging staff without their consent, and requesting that young women working for him sit on his lap, embrace him or allow him to massage their ears.
The individual who took over after him, Lindsay Page, and the chairman, David Bernstein, stepped down the next year when a warning was given that profits would decrease. Additionally, the shares fell sharply due to a mistake in accounting.
Following the "forced hugging" scandal, Mr Kelvin returned to the company as an advisor approximately 12 months later.
