Two of the biggest retail groups in Europe have expressed interest in buying Ted Baker’s European retail business.
Frasers Group led by Mike Ashley and Next led by Lord Wolfson, Aspley Guise have contacted administrators of Teneo Advisory in order to discuss the sale of parts or all of the business.
No Ordinary Designer label, the fashion company’s retail and online business in Britain, Europe and beyond, was placed under administration last month. Authentic Brands Group said it was “too late” to repair the damage caused by a tie-up between Ted Baker and another company. The group bought Ted Baker in 2022 for PS211million.
A agreement with AARC ended in January. AARC is a Dutch company, which was little known, that managed Ted Baker’s UK and European operations. John McNamara is the Chief Strategy and Transition Officer at Authentic. He said that a significant amount of arrears had accumulated.
The decision to appoint administrator did not affect PDS Group, which is the Ted Baker designer, wholesaler, and supplier in Britain and Europe, nor OSL, who operates the Ted Baker operations in North America.
Ted Baker had 975 employees and 46 British and European stores when it went into administration. It also operated a website and department-store concessions. Administrators have announced that 11 UK stores will be closing by April 19. This will result in the loss or 120 jobs. Four more shops will close “in the next few weeks”, leading to an additional 100 redundancies.
Sources said, however, that certain shops could be saved if a deal is struck with Frasers or Next. Both companies are believed to want to retain some of the stores. They have six weeks to make a bid, it is believed. In the next three to four weeks, a buyer may be announced.
Next and Frasers (which owns Flannels and Sports Direct, as well as House of Fraser) have been the two most prolific purchasers of distressed retail businesses over the past few years. Next acquired brands such as Made.com and Joules, an online furniture retailer. Next has also acquired maternity retailers Cath Kidston, JoJo Maman Bebe and Victoria’s Secret, as well as partnership deals with Gap and Victoria’s Secret.
The group was initially interested in The Body Shop but it is believed that its owner had placed the intellectual property assets into a separate entity prior to appointing administrators.
Next already has the rights to sell Ted Baker’s children’s clothing, lingerie, and nightwear. This makes it easy for Next to incorporate the rest of Ted Baker’s range into its own.
Frasers has recently acquired Matchesfashion – a luxury fashion online platform – Wiggle – the cycling retailer – and fast fashion brands Missguided & I Saw It First. Jack Wills, Sofa.com and Game are now part of the group, along with Evans Cycles, Gieves & Hawkes, Gieves & Hawkes, and Gieves & Hawkes. Over the last year, it has acquired shares in online businesses that were undervalued, such as AO World and Currys.
Ted Baker has struggled since Ray Kelvin’s departure in 2019. Ray Kelvin was the founder of the company and he stepped down amid accusations of “forced hugging. He denied the allegations.
After a profit warning, David Bernstein (80), the chairman of the retailer, and Lindsay Page, 65 years old, his successor, both resigned in December. The company’s shares fell after an accounting mistake.
The company then named Rachel Osborne 59 as its chief executive. She created a three-year plan to transform the company and become digitally-first. Osborne was unable, however, to turn around the fortunes of the company.
Authentic, an American company that owns Forever 21 and Reebok, and also has a stake David Beckham’s clothing business, bought the retailer in 2022. Ted Baker was converted into a private company under the agreement.
Next and Frasers Group was contacted to comment.