Ted Baker Faces Administration, Putting Hundreds of Jobs at Risk
By Tom Espiner
Business reporter, BBC News
Published: 19 March 2024, 14:03 GMT
Updated: 1 hour ago
High Street fashion chain Ted Baker is on the brink of administration, endangering the livelihoods of many of its employees. Authentic Brands Group, the owner of Ted Baker since 2022, cited irreparable damage caused during a failed partnership with another company as the reason for this drastic move.
Despite the impending administration, Ted Baker will continue to operate and fulfill customer orders, according to the US-based Authentic Brands Group. The group is currently in talks with potential buyers for the Ted Baker brand.
Ted Baker, known for its stylish designs, currently employs around 975 people and operates 46 brick-and-mortar stores, along with an online platform and concessions in department stores. The specifics of job losses resulting from the administration have not been disclosed.
John McNamara, Chief Strategy and Transition Officer at Authentic Brands Group, expressed regret over the situation, emphasizing the group’s commitment to keeping Ted Baker’s retail presence alive for its loyal customers. The partnership with Dutch firm AARC, which managed Ted Baker’s European operations, faltered, leading to insurmountable financial difficulties for the company.
Founded as a menswear brand in Glasgow in 1988, Ted Baker expanded its reach to the UK, US, and beyond through licensing agreements in Asia and the Middle East. In 2022, Authentic Brands Group acquired Ted Baker in a deal worth £211 million.
This move towards administration follows a period of instability for Ted Baker, including the resignation of founder Ray Kelvin in 2019 amidst misconduct allegations. Subsequent leadership changes and financial challenges have plagued the company, culminating in this latest development.
With a rich history and a loyal customer base, the future of Ted Baker remains uncertain as it navigates this turbulent period in its existence. As the fashion industry continues to evolve, Ted Baker’s fate serves as a cautionary tale for other retailers facing similar challenges.