Ted Baker is ready to shut its final 31 UK shops this week, placing round 500 jobs in danger, as uncertainty looms over a possible rescue deal involving Mike Ashley’s Frasers Group.
The closures mark the top of the retailer’s presence on British excessive streets, following months of turmoil and the collapse of its UK holding firm, No Extraordinary Designer Label (NODL), which entered administration in March.
The potential cope with Frasers Group, which owns Sports activities Direct and different well-known manufacturers, had raised hopes of a lifeline for Ted Baker. Nonetheless, the talks have reportedly stalled, with no settlement in sight. The retailer’s US-based guardian firm, Genuine Manufacturers Group, which acquired Ted Baker’s mental property in 2022 for £211 million, cited important arrears and disappointing gross sales as causes for the model’s monetary struggles.
Earlier this 12 months, 15 Ted Baker shops had been closed, leading to 245 job losses. The model’s troubles started to escalate after its founder, Ray Kelvin, stepped down in 2019 amid allegations of inappropriate behaviour, which he denied. The corporate then confronted a collection of revenue warnings and govt departures, additional exacerbated by the financial influence of the pandemic.
Frasers Group had reportedly been in discussions with Genuine Manufacturers Group to safe a licensing deal for Ted Baker, probably including it to a portfolio that features Flannels, Sport, and Jack Wills. The deal was additionally rumoured to contain Reebok, one other model owned by Genuine. Nonetheless, the dearth of progress in negotiations has now led to the closure of Ted Baker’s remaining shops, leaving the way forward for the model within the UK unsure.
Directors from the advisory agency Teneo, who’re overseeing NODL’s administration, have declined to touch upon the state of affairs. Each Frasers Group and Genuine Manufacturers Group have additionally been contacted for additional feedback.
