Ted Baker closes final stores putting 500 jobs at risk
The last 31 Ted Baker stores in the UK will shut down this week, potentially endangering over 500 jobs.
All of the clothing brand's shops are predicted to be closed by the end of Tuesday.
The company that owns Ted Baker's stores in the UK, No Ordinary Designer Label (NODL), went bankrupt in March of this year.
In April, the company shut down 15 stores and laid off 245 employees. A business expert described the downfall of the brand as a continuous and severe corporate failure.
According to Shore Capital's Clive Black, Ted Baker's journey from poverty to wealth and back to poverty is a sad tale in the British fashion industry. He expressed his dismay at the situation, calling it a difficult time for employees who were facing job losses.
Prior to going into administration, Ted Baker employed approximately 975 staff in the United Kingdom and operated 46 retail stores, along with an online shopping platform and concessions in department stores.
Currently, there are 513 employees working for NODL in the United Kingdom, spread across the Ted Baker stores and head office.
The US company Authentic Brands Group is in possession of the rights to Ted Baker's intellectual property, while NODL was the company in charge of overseeing the brand in the United Kingdom.
Authentic stated that the partnership with another company caused irreparable harm to NODL, leading to the company going into administration in March.
In April, executives mentioned that Authentic was still in talks with potential partners in the UK and Europe to operate the Ted Baker brand.
Yet, according to Sky News, who initially reported the recent store closures, discussions regarding a possible licensing agreement for the future have come to a halt.
Ted Baker started out as a men's clothing brand in Glasgow in 1988 and expanded to have stores throughout the UK and in America, with partnerships set up for shops in cities in Asia and the Middle East.
However, the company has faced challenges recently due to instability. This began in 2019 when the founder Ray Kelvin stepped down following accusations of inappropriate behavior, although he refuted these claims.
His replacement Lindsay Page and chairman David Bernstein stepped down the next year after a warning about a decrease in profits.
Mr. Black stated that Ted Baker, a stylish British brand known for its modern and ambitious designs, was unable to bounce back from accusations of misconduct. This resulted in a prolonged period of decline for the company.
Retail expert Catherine Shuttleworth mentioned to the BBC that even though the brand has been strong over time, a "lack of funding along with underwhelming sales" led customers to look for inspiration elsewhere, making it hard for the brand to continue surviving.
The 31 stores that will shut down are located in:
Ashford, Bath, Belfast, the Bluewater shopping center in Kent, Braintree, Brent Cross (London), Bridgend, Cannock, Cheshire Oaks, Dublin, Grafton Street, Gatwick north, Gatwick South, Glasgow Buchanan Street, Gloucester Quays, Heathrow Terminals 2, 3, 4 and 5, Kildare, Livingston, Luton, Manchester Shambles, O2 Outlet, Portsmouth, Regent Street (London), Sheffield, St Pancras (London), Stansted, Swindon, White City (London) and York.
Ted Baker also has contracts to allow stores in Asian and Middle Eastern cities, and those locations are still operating as usual.
On Sunday, the UK retail website displayed the message "See you later" and informed customers they have 14 days to return items. The website also stated that it is not currently accepting any orders.
