Ted Baker is preparing to place its network of stores across the UK into insolvency, putting hundreds of jobs at risk.
The fashion chain has filed a notice of intention to appoint insolvency administrators to No Ordinary Designer Label, the part of the business that runs its shops. Advisory firm Teneo is being lined up to handle the process.
Ted Baker’s brand and intellectual property is owned by Authentic Brands Group Inc., the US company which is also behind brands such as Reebok. The UK retailer employs almost 1,000 people and has more than 40 stores across the country, alongside a website and department store concessions.
Authentic Brands said Ted Baker will continue to operate as normal during the administration. “We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began,” it said in an email.
Authentic Brands bought Ted Baker in 2022 in a £211 million ($268 million) deal following a series of profit warnings. It then appointed Dutch company AARC to run the shops.
However, Authentic said problems arose under AARC — whose relationship is now terminated — as significant arrears were allowed to build up. “We wish there could have been a better outcome for the Ted Baker employees and stakeholders,” Authentic said in a statement.
News of the administration is the latest blow for Ted Baker which has been struggling to revive its fortunes since it was engulfed in a scandal in 2019 when founder Ray Kelvin departed after being accused of inappropriate hugs and other behavior in the workplace. Kelvin denied any wrongdoing.
Ted Baker is not the only UK retailer to suffer from an intensely competitive marketplace. Earlier this year the Body Shop’s UK business, which had about 200 stores, went into administration. The Wilko chain of shops, which had about 400 stores, fell into insolvency last summer. Paperchase, Cath Kidston and M&Co were among other brands that went into administration in the past two years.
Often in insolvency processes not all stores end up closing and some branches can be taken over by rival retailers.
