Ted Baker to close all UK stores as potential Mike Ashley deal falters
Ted Baker To Close Last 31 UK Stores, 500 Jobs At Risk
The shutdowns indicate that the retailer will no longer have stores in British shopping areas. This comes after a period of instability and the downfall of its UK parent company, No Ordinary Designer Label (NODL), which went into administration in March.
The possible agreement with Frasers Group, the company that owns Sports Direct and other popular brands, had given Ted Baker hope for survival. But now, it seems like the discussions have hit a roadblock and there is no deal on the horizon. The parent company of Ted Baker, Authentic Brands Group, based in the US, bought the brand's intellectual property for £211 million in 2022. They pointed to large debts and poor sales as the main reasons behind Ted Baker's financial troubles.
At the beginning of the year, Ted Baker had to shut down 15 of its stores, leading to 245 employees losing their jobs. The problems for the brand started when its founder, Ray Kelvin, resigned in 2019 due to accusations of misconduct, which he denied. Since then, the company has been struggling with financial issues, including profit warnings and key staff members leaving, worsened by the challenges brought on by the pandemic.
According to reports, Frasers Group was talking with Authentic Brands Group about getting a license deal for Ted Baker. They were considering adding it to their collection, which already includes Flannels, Game, and Jack Wills. There were also rumors that the deal might include Reebok, another brand owned by Authentic. Unfortunately, the talks didn't go anywhere, and as a result, Ted Baker's remaining stores have now closed. This has left the future of the brand in the UK up in the air.
The advisory firm Teneo administrators in charge of NODL's administration have chosen not to provide any statements on the matter. We have also reached out to Frasers Group and Authentic Brands Group for additional insights but have yet to receive any responses.
