Ted Baker Faces Administration, Hundreds of High Street Jobs at Risk
Ted Baker’s British operations are on the brink of administration, putting hundreds of high street jobs in jeopardy. No Ordinary Designer Label, operating under the Ted Baker brand, has initiated proceedings by filing a notice of intention to appoint Teneo Financial Advisory as administrators, signaling potential store closures and job losses. The move follows Ted Baker’s delisting from the London stock market approximately 18 months ago after being acquired by ABG for £210 million.
The retail brand faced challenges in its partnership with AARC, leading to its abandonment amidst disputes between the parties. While the full extent of store closures and job losses remains uncertain, Ted Baker is expected to continue trading during the insolvency process.
Ted Baker’s struggles trace back to the departure of founder Ray Kelvin in 2019 amid allegations of inappropriate behavior towards female colleagues. Subsequent profit warnings and accounting errors compounded the company’s woes, exacerbated by financial vulnerabilities during the COVID-19 pandemic. In response, Ted Baker implemented cost-cutting measures in 2020, including job cuts and raising £100 million to stabilize its finances.
ABG, Ted Baker’s parent company, has seen its valuation rise significantly, particularly after selling a controlling stake to a division of BlackRock in 2019. Despite efforts to address financial challenges, Ted Baker faced insurmountable hurdles, leading to the current administration proceedings.
John McNamara, ABG’s chief strategy and transition officer, expressed regret over the situation, emphasizing efforts to secure a new partner to sustain and expand the Ted Baker brand in the UK and Europe. However, the company declined to comment further on the matter.
The potential administration of Ted Baker underscores ongoing challenges in the retail industry and highlights the precarious state of high street jobs amidst economic uncertainties.
