Ted Baker’s Final 31 UK Stores to Close Amid Frasers Licensing Uncertainty
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Ted Baker Stores Closing
Dozens of Ted Baker stores will close for good this week. The shutdown comes amid growing doubts about a licensing deal with Mike Ashley’s Frasers Group.
Stalled Talks
Sky News reports that negotiations between Frasers Group and Authentic Brands, Ted Baker’s owner, have stalled. This comes three months after it seemed a deal was near.
Ted Baker Store Closures
Administrators from No Ordinary Designer Label, Ted Baker’s previous partner, are managing the shutdown of the remaining 31 UK stores. The final day of trading is reportedly this Tuesday.
Employment Concerns
Ted Baker Stores Close The closure impacts just over 500 employees, putting their jobs at risk.
Frasers Group Deal Talks
Frasers Group has been exploring a deal with Authentic Brands, covering both Ted Baker and Reebok. However, sources close to Authentic deny ongoing negotiations. Despite this, property industry sources indicate that recent discussions about reopening some Ted Baker stores have occurred.
Potential Deal Impact
Ted Baker Stores Close Had a deal been reached, Ted Baker would have joined Mike Ashley’s extensive retail empire. This includes brands like Evans Cycles, Gieves & Hawkes, House of Fraser, Jack Wills, and Sports Direct.
Other Contenders
Ted Baker Stores Close Next was also considered a potential buyer, and OSL, Ted Baker’s former US licensing partner, showed interest early in the process.
Store Closures and Job Losses
NODL’s administrator, Teneo, shut down 15 Ted Baker stores in the spring, resulting in over 200 job losses.
Financial Struggles and Acquisition
Ted Baker was delisted from the London stock market in 2022 following its acquisition by Authentic Brands for approximately £210m. The retailer’s difficulties began in 2019 when founder Ray Kelvin left amid allegations of inappropriate behavior. This led to multiple profit warnings, accounting issues, and financial instability exacerbated by the COVID-19 pandemic. In 2020, Ted Baker cut hundreds of jobs and raised £100m to stabilize its finances.
Current Status
Authentic and Frasers Group have declined to comment on the situation.