(qlmbusinessnews.com Wed 20th, March 2024) London, UK —
Ted Baker Jobs Hanging by a Thread as Fashion Chain Enters Administration.
Hundreds of jobs are at risk at struggling British fashion chain Ted Baker after its owner announced plans Tuesday to appoint administrators in a bid to find a buyer and secure the brand's future.
Authentic Brands Group, the U.S. company that acquired Ted Baker in 2022 for £211 million ($275 million), said it had been left with no choice but to pursue an administration process after a failed European partnership deal proved too financially damaging to overcome.
In a statement, Authentic Brands said it was in “advanced discussions” with potential buyers interested in acquiring the Ted Baker brand. But it warned that the holding company behind the chain's British and European operations had racked up substantial debts during an ill-fated tie-up with Dutch firm AARC.
“The damage done to the business was too much to overcome,” said John McNamara, Authentic Brands Group's chief strategy and transition officer. “We wish that there could have been a better outcome for the Ted Baker employees and stakeholders.”
Ted Baker, which began as a men's specialty store in Glasgow in 1988 before expanding into a major fashion chain, currently employs around 975 people and operates 46 stores in addition to concessions in department stores and an online retail platform.
Authentic Brands did not specify how many of those jobs could be lost if administrators fail to find a buyer to take on the business as a going concern. But the move represents a major threat to the workforce after a highly turbulent period for the company.
Ted Baker was rocked by misconduct allegations against founder Ray Kelvin in 2019, with the businessman accused of engaging in unwanted hugging with employees and other inappropriate behavior. Kelvin resigned but later returned in an advisory role. That was followed by profit warnings and the departures of Kelvin's successors as CEO and chairman in 2020 amid an accounting scandal.
Administrators from professional services firm Teneo are expected to be appointed in the coming days. Authentic Brands said Ted Baker will continue to trade online and in stores for the time being as rescue efforts continue.
“It is hopefully some consolation for customers that the Ted Baker brand they love will continue to trade online and in stores,” McNamara said.
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