Troubled Fashion Retailer's 31 Shops to Close Five Months After Chain Went Into Administration
The remaining 31 Ted Baker stores in the UK are set to close this week, putting more than 500 jobs at risk. All of the fashion brand's stores are expected to have shut by the end of Tuesday.
Started as a men’s clothing label in Glasgow in 1988 by entrepreneur Ray Kelvin and becoming known for its quirky advertising and floral prints, Ted Baker’s UK arm entered administration in March after racking up losses.
Ted Baker has been struggling for several years in the face of increasing competition, a shift to online trading and the fallout from the exit of Kelvin, who stepped down in 2019 after allegations of “forced hugging”.
The UK fashion industry as a whole has had a tough year after an unseasonably cold spring and early summer, while the cost of living crisis has dampened spending on non-essentials.
Authentic Brands, the firm behind a number of fashion labels including Juicy Couture and Reebok, still owns Ted Baker’s intellectual property. It had been searching for a new partner to run the retail and online business in the UK and Europe. Sports Direct founder Mike Ashley’s Frasers Group had been a frontrunner, but talks are understood to have fallen through.
It emerged last month that Ted Baker could disappear from British high streets after staff were told that the remaining stores could close. Sky News reported on Sunday that talks to find a potential future licensing partnership had stalled.
It comes after NODL reported a near £44m loss in the year to January as sales slid by almost 8% to £176m in the year to January amid problems with its former European licensee.
The brand has stores in the US, Asia and the Middle East as well as in Europe. It also sells directly to department stores and licenses its brand for products including childrenswear and lingerie, both of which are run by British retailer Next. The licences, franchises and US business are understood to be unaffected by the problems at NODL.
Why Ted Baker's UK stores are closing
Authentic has been considering options for the future of the business since the end of January, when it terminated a deal with the Dutch company AARC, which operated Ted Baker’s retail stores and website in the UK and Europe.
When NODL fell into administration in March, Authentic said the “damage done” during a tie-up with AARC was “too much to overcome”.
The Future of Ted Baker
The fashion label's remaining 31 shops in the UK will close for the last time this week as uncertainty grows about a licensing partnership with Mike Ashley's retail empire, Sky News understands.
Sky News understands that talks between Mr Ashley's Frasers Group and Authentic, Ted Baker's owner, have stalled three months after it appeared that an agreement was imminent.
Administrators to Ted Baker's existing partner, No Ordinary Designer Label, which collapsed in the spring, are overseeing the closure of its remaining 31 UK shops.
One store source said they had been told that this Tuesday would be the final day of trading.
The business in Britain still employs just over 500 people, with those jobs at risk.
Frasers Group is reported to have been discussing a deal with Authentic encompassing both Ted Baker and Reebok.
Sources close to Authentic insisted that there were no ongoing talks between the two sides, although property industry sources suggested that conversations about a potential reopening of a small number of Ted Baker stores had been held as recently as the last few weeks.
Ted Baker's Decline
The collapse of the UK stores could mark the end of its position on high streets, after being founded in 1988 by Ray Kelvin and becoming recognised for its patterned and floral clothing.
However, the brand is currently still sold through some department stores and retailers.
Sky News explained that Authentic and Frasers had declined to comment.
The Ted Baker Story
It’s expected that all Ted Baker stores will be shut by the end of Tuesday, August 20.
This comes as No Ordinary Designer Label (NODL), the firm behind the company’s UK shops, went into administration in March 2024.
Then in April, 15 shops were closed by its administrators, leading to the loss of 245 jobs, reports the BBC.
Before it went into administration, Ted Baker ran 46 shops and had around 975 employees as well as an e-commerce platform and department store concessions.
Authentic Brands Group, the US-based firm behind Juicy Couture and Reebok, is the owner of Ted Baker’s intellectual property.
NODL partly blamed the process on “damage” done during a partnership with Dutch company AARC Group and the “significant level of arrears” that had built up during the association.
Sky News reports that NODL “collapsed in the spring” and will be overseeing the closure of Ted Baker's remaining 31 stores.
A Licensing Partnership Stalled
The news outlet said it “understands that talks between Mr Ashley's (Mike Ashley) Frasers Group and Authentic, Ted Baker's owner, have stalled three months after it appeared that an agreement was imminent.”
It said it has been reported that Frasers Group and Authentic were discussing a deal involving both Ted Baker and Reebok.
However, sources close to Authentic have denied that these ongoing talks are happening, it said.
The End of an Era?
The closure of Ted Baker's UK stores marks the end of an era for the British fashion brand. The company was once a household name, known for its quirky advertising and stylish clothing. However, in recent years, Ted Baker has struggled to keep up with the changing retail landscape. The company has been plagued by financial problems and allegations of misconduct. Now, it seems that Ted Baker is on the verge of disappearing from British high streets altogether. It remains to be seen whether the brand will be able to find a new home in the UK, or whether it will be forced to focus on its international operations. Only time will tell what the future holds for Ted Baker.
