Ted Baker’s European Retail and Online arm will appoint administrators. This puts almost 1,000 jobs in danger at the British brand.
The fashion brand has struggled for years due to increased competition and the fallout of the departure of its founder Ray Kelvin in 2019. Kelvin resigned in 2019 following allegations of ‘forced hugging’.
In 2022, the then-listed retailer with 500 stores and concessions in the world agreed a £211m takeover from Authentic Brands Group, the US group which owns Reebok, and a stake David Beckham’s clothing and merchandise empire.
This came after No Ordinary Designer Label, the holding company of Ted Baker’s European retail division, reported an annual pre-tax loss in the amount of PS43m on sales of almost £320m.
Approximately 500 people worked in its headquarters. Now, it is believed that 975 people work in the UK and continental Europe.
ABG has been evaluating options for the future NODL, since it terminated its contract with AARC in January. AARC operated Ted Baker’s retail stores as well as the website and online store across the UK and Europe.
The brand is present in Europe, the Middle East and Asia. Next also licenses its brand to sell products such as children’s wear and lingerie. It is believed that the NODL problems have not affected franchises, licences or US business.
John McNamara is the Chief Strategy and Transition Officer for Authentic Brands Group. He said: “Despite all our efforts, we were unable to reverse the damage caused during a time under AARC when NODL accumulated a large amount of arrears.
“We wish there had been a more positive outcome for Ted Baker’s employees and other stakeholders. NODL’s decision to continue trading online and in-stores is a consolation that customers can take comfort from.
We remain committed to finding a new partner who will help us maintain and grow the Ted Baker Brand in the UK and Europe, where it all began.
Authentic Brands has confirmed that Ted Baker stores, as well as the retailer’s site, will continue to operate during administration.
Ted Baker faced high rent bills at its UK outlets, and it was reported last month that the company was considering insolvency to allow it to close their stores.