Ted Baker to close 15 stores and cut 245 jobs
The origin of the photo is credited to Getty Images
The administrators of Ted Baker, a popular fashion chain on the High Street, have announced a plan to shut down 15 of their stores in the UK and remove 245 jobs.
Administrators of the company's parent company have announced that eleven of their stores will shut down by April 19th, resulting in the loss of 120 jobs.
Furthermore, 25 positions in the headquarters will be eliminated, and four shops that were planned to shut down before the administration will soon be closed, resulting in the loss of 100 jobs.
The company responsible for operating Ted Baker's stores in the United Kingdom, known as No Ordinary Designer Label (NODL), appointed administrators last month.
At the time it was put into administration, Ted Baker had approximately 975 workers located in the United Kingdom and managed a total of 46 retail locations. Additionally, they maintained an online store and had concessions within department stores.
The intellectual property of Ted Baker belongs to Authentic Brands Group, a company based in the United States. In the UK, the brand is held by NODL, the holding company.
Last month, NODL went into administration. Authentic Brands explained that their partnership with another company caused irreversible harm.
According to the report, NODL had accumulated a notable amount of unpaid money during their collaboration with AARC, a company from the Netherlands. This partnership concluded earlier in the year, in January.
The store managers stated that the shops that are set to shut down "aren't likely to ever make a profit again, even if their rent is significantly lowered".
According to Danni Hewson, the person in charge of financial analysis at the investment platform AJ Bell, the Ted Baker company still appears to have appeal to shoppers, but it is not as strong as it used to be. For instance, younger consumers tend to only purchase fragrances and underwear from the brand.
Ms. Hewson proposed that Next might consider acquiring the fashion chain. She pointed out that Next already has a connection with the brand and it wouldn't be unexpected for them to absorb the company into their portfolio, primarily since the business has undergone a significant reduction.
In the meantime, a representative called joint administrator Benji Dymant stated that Ted Baker is a well-known brand from Britain that has dependable collaborators all over the globe.
The closing of these stores will unfortunately affect the employees who work there, but it will ultimately benefit the business. Authentic is currently in talks with potential partners in the UK and Europe to help revitalize the Ted Baker brand and improve its performance.
There are 11 stores that will be shutting down on or before the 19th of April.
There are four stores scheduled to shut down within the next few weeks.
Ted Baker started off as a label specialized in men's fashion in Glasgow back in 1988, and eventually expanded its presence to include numerous stores across the United Kingdom as well as in the US.
The company also has legal agreements established for retail outlets located in various urban areas throughout Asia and the Middle East.
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