Companies

Uncertainty for Ted Baker as UK and European arm goes into administration

Mar 20, 2024 United Kingdom

The British fashion retailer is planning to appoint administrators, a spokesman for owner Authentic Brands Group confirmed on Tuesday. Hundreds of jobs are expected to be at risk

The intention to appoint administrators comes six weeks after No Ordinary Designer Label (NODL), which operates Ted Baker’s retail stores and websites in the UK and Europe, ended its partnership with Dutch company AARC. “Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome”, said John McNamara, the chief strategy and transition officer of Authentic Brands Group.

The identity of the administrators has not yet been confirmed. Still, Sky News previously reported that NODL planned to appoint Teneo Financial Advisory in a move expected to result in store closures and hundreds of job losses. “We wish there could have been a better outcome for the Ted Baker employees and stakeholders. It is hopefully some consolation for customers that NODL will continue to trade online and in stores”, added McNamara.

The fashion brand, which has 46 stores across the UK and Europe, has struggled for several years. It faced increasing competition and the fallout from the departure of founder Ray Kelvin, who stepped down in 2019 following allegations of misconduct. Pandemic losses then forced Ted Baker to put itself up for sale in 2022, and ABG agreed to a buyout deal worth around 269 million US dollars.

“We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began”, concluded the chief strategy and transition officer of ABG. Meanwhile, Ted Baker’s licensees, franchisees and US operations are said to be unaffected by the problems at NODL.

Image Credits: retail-week.com

Europe United Kingdom ABG Authentic Brands Group Employment Fashion Insolvency