Ted Baker announces plans to appoint administrators putting hundreds of jobs at risk
Ted Baker is reportedly inching closer to administration
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Ted Baker has confirmed it has plans to call in administrators in a move that will put hundreds of jobs at risk.
The fashion retailer filed a notice of intention to appoint Teneo Financial Advisory as administrator earlier today.
This decision by the No Ordinary Designer Label, which trades under Ted Baker, is expected to result in job losses and store closures.
However, it is unknown how many Ted Baker stores and staff roles are currently at risk.
According to a source, no redundancies would be announced on day one of the insolvency process despite jobs being at risk, Sky News reports.
Authentic Brands Group (ABG), which bought retailer Ted Baker in 2022, blamed “damage done” to the brand during Dutch company AARC’s time running its store and e-commerce business.
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It is expected that jobs could be on the line
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The US group confirmed that Ted Baker stores and the retailer’s website will continue to trade.
John McNamara, chief strategy and transition officer for Authentic Brands Group, said: “We wish that there could have been a better outcome for the Ted Baker employees and stakeholders.
“We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began.”
Currently, the retailer operates 86 Ted Baker stores across the UK which could now be at risk of closing down.
This comes amid a wave of high street closures which has impacted the in-person shopping experience for millions.
In February, ABG said it has been looking into several cost-saving measures to shore up the company's "soaring" costs.
Two years ago, ABG saved the high street fashion retailer part of a £211million acquisition deal.
The Ted Baker brand has been mired in financial woes since 2019 after founder Ray Kelvin departed the company.
Following this, the retailer issued a series of profit warnings which resulted in the group navigating the Covid-19 pandemic from a place of economic weakness.
It cut hundreds of staff roles and generated £100million to shore up its balance sheet in 2020.
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PAIn the last couple of years, ABG’s valuation has skyrocketed after reportedly selling a controlling stake to a division of Blackrock for $870million in 2019.
The parent company also owns other fashion retailers like Forever 21, Rebook and Brooke Brothers.
Shareholders in ABG include General Atlantic and Lion Capital, and Singaporean state investment fund, GIC.
GB News has contacted Ted Baker for comment.