Frasers Group is nearing a deal to acquire Ted Baker’s British arm, raising concerns about the future of the brand’s head office staff.
The deal is not expected to include the business’s London-based head office workers, who currently number just under 100.
Since Teneo was appointed Ted Baker’s administrator earlier this year, these employees have already faced three redundancies.
To assist with the transition, restructuring specialist Hilco has been brought in by Teneo to help manage stock.
In an email to staff, viewed by Drapers, the administrators acknowledged the uncertainty caused by the potential headcount reductions.
They said: “We understand the adjustment to headcount may leave many feeling increasingly uncertain.Â
“Based on our current forecast, we still anticipate trading under the current strategy until mid-August, with the team in place after 31 May expected to deliver this strategy.”
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The email also mentioned that as trading continues, the timeline to mid-August will become clearer, and administrators will update staff as frequently as possible.
This development follows Ted Baker’s recent closure of its North American stores and website, marking its descent into administration.
Last week, a dispute emerged between Ted Baker’s largest creditor and the chain’s administrators over a potential conflict of interest.
Secure Trust Bank, the main lender, sought to replace Teneo as administrator due to Teneo’s ownership ties with the private equity firm that holds a stake in Ted Baker’s owner, Authentic Brands, as reported by The Times.
