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Hundreds Of Jobs Could Go As Ted Baker Calls In Administrators

By Hugh Fort in UK Business News, posted March 19, 2024

Hundreds of jobs are on the line after Ted Baker's British operations called in Administrators.

Sky News reports the fashion giant's owner No Ordinary Designer Label has filed a notice of intention to appoint Teneo Financial Advisory as administrators.

The move is likely to mean stores closing and staff losing their jobs.

No numbers have been revealed yet and a source said no redundancies would be announced on the first day of an insolvency process.

Sources said Ted Baker would continue to trade during the insolvency process.

Problems since 2019

Ted Baker's problems started in 2019.

Founder Ray Kelvin left after claims of inappropriate behaviour towards female staff.

Its problems meant it had to enter the Covid pandemic from a position of financial uncertainty.

It cut hundreds of jobs in 2020 and was able to save £100m.

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The collapse comes roughly 18 months after Ted Baker delisted from the London stock market after being bought by ABG for about £210m.

ABG's chief strategy and transition officer, John McNamara, said: "Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome.

"We wish that there could have been a better outcome for the Ted Baker employees and stakeholders. It is hopefully some consolation for customers that NODL will continue to trade online and in stores.

"We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began."

Teneo declined to comment.

Gary Hemming, Commercial Lending director at abcfinance.co.uk, said:

"Ted Baker has faced a torrid few years after their founder left the business in 2019 following allegations of inappropriate behaviour.

"This had led to a real domino effect for the brand as reputational damage coupled with instability in the company hierarchy saw Ted Baker head into the pandemic in a sorry state.

"While most retail brands reacted quickly and adapted to the new market, there was a feeling that Ted Baker, already reeling, failed to do so.

"From there, a death spiral has ensued as the brand has slipped to irrelevance, being replaced by newer, fresher brands that have managed to capture the interest of shoppers.

"Sadly, even well-known national brands aren’t immune to these sorts of failings, around business financial management, poor sales and brand damage have proven too much to deal with”

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