Ted Baker’s remaining stores are set to close on 20 August, creating uncertainty around its future.
- The potential licensing deal with Mike Ashley’s Frasers Group remains unresolved, prompting closures.
- Closure of 31 stores threatens approximately 500 jobs, a challenging prospect for many employees.
- Ted Baker’s owner, Authentic Brands Group, entered administration in March, complicating the situation.
- The closure follows unsuccessful talks with new operating partners, impacting the brand’s presence.
Ted Baker, a premium fashion retailer, is facing significant upheaval as its final 31 stores are set to close on 20 August. This development comes amidst ongoing uncertainty surrounding a possible licensing agreement with Frasers Group, owned by Mike Ashley. Despite being a frontrunner for taking over Ted Baker’s British operations since May, no deal has yet been finalised, leaving the future of the brand in jeopardy.
The impending closure of these stores will affect around 500 jobs, highlighting the fragile state of the retail sector and the challenges faced by employees of the brand. As of March, the company reportedly employed 975 individuals across the UK and Europe, with 46 stores excluding concessions. The news of closures arrives after already substantial job losses occurred in March when the retail and e-commerce division, No Ordinary Designer Label, went into administration, leading to the shutdown of 15 stores and nearly 250 layoffs.
Authentic Brands Group, the owner of Ted Baker, has been in discussions with Frasers Group to find a solution, but negotiations have stalled, leaving both the staff and prospective operating partners in a state of uncertainty. In late July, administrators at Teneo communicated to employees that all Ted Baker stores, concessions, and its website would cease operations over the coming weeks after talks with potential new partners failed to yield a result.
Administrators have, however, indicated that while they cannot confirm exact dates, it is considered unlikely that stores will remain open after August. The company’s UK website has already ceased operations earlier this month, marking a significant step in the closure process. Teneo’s senior managing directors Benji Dymant and Daniel Smith were appointed as joint administrators in March, following the administration of Ted Baker’s retail arm, No Ordinary Designer Label.
The closure of Ted Baker’s stores signifies a broader impact on the British high streets, as it contributes to a growing number of retail vacancies. Confirmations from Teneo underscore that all stores will close by the end of business on the specified date.
Ted Baker’s imminent store closures mark a challenging period for the brand amidst unresolved discussions with Frasers Group.
