Home » Business News • UK Business News • UK Employment news » Ted Baker To Shut 15 Stores And Cut 245 Jobs Amid Restructuring

Ted Baker To Shut 15 Stores And Cut 245 Jobs Amid Restructuring

By Nithya Bose in Business News, posted April 14, 2024

Ted Baker will close 15 stores and eliminate 245 jobs to streamline operations, administrators announced.

This decision will result in 11 stores closing by April 19, resulting in the loss of 120 jobs.

The closure of four other stores, already planned before the company's descent into administration, will lead to 100 more job cuts.

The fashion retailer will also reduce its head office staff by 25 positions.

The closures are managed by No Ordinary Designer Label (NODL) administrators, the entity that operates Ted Baker's UK outlets.

NODL recently entered administration following difficulties exacerbated by a problematic partnership with the Dutch firm AARC, which ended earlier this year.

Authentic Brands Group, which owns the intellectual property rights to Ted Baker, cited the irreparable financial damage from this partnership as a key reason for the administration.

According to the administrators, the affected stores were deemed unprofitable and unlikely to return to profitability, even with substantial rent reductions.

This move is part of a broader strategy to salvage the brand, which, despite its challenges, continues to hold consumer appeal, particularly in segments like fragrances and underwear.

Danni Hewson, a financial analyst, noted while Ted Baker still resonates with consumers, its influence is waning among younger demographics.

Hewson speculates that Next, which already has ties with Ted Baker, might be a potential buyer, integrating the brand into its larger retail family.

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Joint administrator Benji Dymant said: "Ted Baker is an iconic British brand with strong partners around the world.

"These store closures, whilst with a regrettable impact on valued team members, will improve the performance of the business, as Authentic continues to progress discussions with potential UK and European operating partners for the Ted Baker brand to bring the business back to health."

As Authentic Brands Group continues discussions with potential operating partners in the UK and Europe, there is hope for revitalising Ted Baker and restoring its market position.

The stores set for closure by April 19 include locations in major cities like Birmingham, Bristol, Cambridge, and Leeds, among others.

Stores in Bicester, two locations in London, and Manchester Trafford will close in the weeks following.

Ted Baker was founded in Glasgow in 1988 and expanded internationally, with licensed stores in Asia, the Middle East, the UK, and the US.

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