Ted Baker is planning to shut down its stores and website next month due to unsuccessful negotiations.
- The brand’s administrators have communicated that the closures were not reflective of staff performance.
- Ted Baker previously had 46 stores and employed 975 people before entering administration.
- Authentic Brands Group’s licensing model transition has faced obstacles without a new operating partner.
- Frasers Group’s potential takeover has not materialised, making closures highly likely.
Ted Baker, a well-known retailer, is set to close all its stores, concessions and its website next month as discussions with potential new operating partners have reached a stalemate. The announcement was made to staff following unsuccessful negotiations, highlighting the challenging circumstances facing the brand.
In an internal communication, administrators Teneo reassured staff that the planned outcome does not reflect on their performance or effort over the past months. The remarkable contribution by the team was specifically commended despite the unfavourable business outcome.
Before entering administration in March, Ted Baker employed 975 people across the UK and Europe and operated 46 stores excluding concessions. This illustrates the scale of impact the closures will have.
Authentic Brands Group acquired Ted Baker in 2022 for £211 million, converting it to a licensing-based operation. However, the shift has encountered hurdles as efforts to secure a new operating partner have failed.
Frasers Group had emerged as a frontrunner in potentially taking over Ted Baker’s UK operations. However, with a conclusive agreement yet to be reached, the possibility of imminent store closures is now substantial. The administrators have indicated that an immediate transition to a new operator is not expected once the current stock sale strategy concludes.
With stock clearance underway, the closure of all physical stores, concessions and the website is anticipated between 9 and 21 August. Administrators suggest it is unlikely that any retail operations will continue beyond August, marking the end of Ted Baker’s current retail presence in the region.
The forthcoming closures underscore the ongoing challenges faced by Ted Baker amidst unsuccessful partnership negotiations.
