The parent company of Ted Baker is set to call in administrators for its UK business in the latest British fashion sector collapse.
Hundreds of jobs are expected to be at risk as No Ordinary Designer Label looks to appoint administrators after it ended up “a significant level of arrears”, according to parent company Authentic Brands Group.
“Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome,” said Authentic’s chief strategy and transition officer John McNamara.
“We wish that there could have been a better outcome for the Ted Baker employees and stakeholders. It is hopefully some consolation for customers that NODL will continue to trade online and in stores.
“We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began.”
The Telegraph had reported last month that the business was close to collapse, and was considering briging in Teneo for restructuring.
The collapse would be the latest business failure in British fashion, a little over a week after Frasers put retailer Matches Fashion into administration. Other recent high-profile companies to go bust include Hunter Boot andFarFetch. It comes just 18 months after Ted Baker was acquired by Authentic Brands Group. Many more household names in the sector, such as Superdry, have struggled even if they have not collapseded completely.
Authentic also owns brands such as Billabong, Eddie Bauer and Forever 21, as well as American magazine Sports Illustrated, which has faced major struggled of its own. It bought Ted Baker, which had previously been publicly traded, in 2022 in a deal worth £211 million. It reportedly stepped in last year with additional help as Ted Baker struggled for funding.
Today’s news comes weeks after the end of its partnership with Dutch firm AARC, which ran Ted Baker’s shops and online business in Europe.
Gary Hemming, Commercial Lending director at abcfinance.co.uk, said: "Ted Baker has faced a torrid few years after their founder left the business in 2019 following allegations of inappropriate behaviour. This had led to a real domino effect for the brand as reputational damage coupled with instability in the company hierarchy saw Ted Baker head into the pandemic in a sorry state. While most retail brands reacted quickly and adapted to the new market, there was a feeling that Ted Baker, already reeling, failed to do so.
“From there, a death spiral has ensued as the brand has slipped to irrelevance, being replaced by newer, fresher brands that have managed to capture the interest of shoppers.
Sadly, even well-known national brands aren’t immune to these sorts of failings, around business financial management, poor sales and brand damage have proven too much to deal with”.
Ted Baker was founded by Ray Kelvin in Glasgow in 1988 and is headquartered in Fitzrovia. Kelvin left in 2019 following allegations of inappropriate behaviour.
Sky reports that the business is set to keep trading through the insolvency process.
There are 86 Ted Baker stores in the UK.
Sky News, which first reported the collapse, claims insolvency specialists at Teneo are being lined up to take over the firm.
