Ted Baker to close 15 UK stores with the loss of 245 jobs

Ted Baker, a popular fashion brand on the high street, has recently announced its decision to shut down 15 stores across the United Kingdom. Unfortunately, this move will result in 245 job losses as the brand faces financial administration difficulties.

The European division of the company, which sells items in physical and digital stores, selected Teneo as administrators in the previous month. This happened because the retailer encountered difficulties due to difficult market conditions and problems arising from the removal of its founder, Ray Kelvin, in 2019, amidst accusations of creating a culture that coerced employees to hug each other. Furthermore, Ted Baker also experienced setbacks due to an accounting mistake and numerous instances of warning about profits.

Teneo announced on Monday that a total of eleven Ted Baker stores that were making a loss will be closed permanently by 19th April, and this will result in 120 job losses. These shops include outlets that are located across Birmingham's Bullring shopping centre and also in Liverpool, Oxford, Leeds, Bristol, Milton Keynes and Nottingham. Teneo's evaluation reveals that there are no viable prospects of transforming these unprofitable stores into profitable ones, even if they were to reduce the rent. In order to slash costs, 25 personnel working at the head office will also be laid off.

In the next few weeks, a total of four stores will be closing down, resulting in approximately 100 people losing their jobs. This decision was made after the landlords of the establishments, which are located in Manchester, Bicester, and two in central London, gave notice to the businesses.

According to Teneo, Authentic Brands is still searching for a fresh operating partner for Ted Baker's retail and online enterprise in the UK and Europe. Authentic Brands is the intellectual property proprietor of Ted Baker.

Benji Dymant, who is working as a joint administrator for No Ordinary Designer Label, the company that sells the Ted Baker brand in the UK and Europe, expressed his disappointment about the closure of the stores.

He stated that the choice "will enhance the business's performance" while also noting that Authentic is currently in discussions with potential UK and European partners for the Ted Baker brand. Through these partnerships, the aim is to revitalize the business and restore its health.

The shutting down of these shops is just another negative impact on the British shopping district. This area has already been negatively affected this year due to a number of major stores filing for bankruptcy, a result of consumers decreasing their expenses in response to a larger economic decline.

The UK arm of The Body Shop had to appoint administrators FRP in February, which led to them shutting down some of their stores and letting go of 300 head office employees. Similarly, the Frasers Group, owned by Mike Ashley, had to bring in administrators which resulted in luxury clothing retailer Matchesfashion losing more than half its workforce as they cut 273 jobs.