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Ted Baker to close all UK stores as potential Mike Ashley deal falters

August 19, 2024

Ted Baker is set to close its last 31 UK stores this week, putting around 500 jobs at risk, as uncertainty looms over a potential rescue deal involving Mike Ashley’s Frasers Group.

The closures mark the end of the retailer’s presence on British high streets, following months of turmoil and the collapse of its UK holding company, No Ordinary Designer Label (NODL), which entered administration in March.

The potential deal with Frasers Group, which owns Sports Direct and other well-known brands, had raised hopes of a lifeline for Ted Baker. However, the talks have reportedly stalled, with no agreement in sight. The retailer’s US-based parent company, Authentic Brands Group, which acquired Ted Baker’s intellectual property in 2022 for £211 million, cited significant arrears and disappointing sales as reasons for the brand’s financial struggles.

Earlier this year, 15 Ted Baker stores were closed, resulting in 245 job losses. The brand’s troubles began to escalate after its founder, Ray Kelvin, stepped down in 2019 amid allegations of inappropriate behaviour, which he denied. The company then faced a series of profit warnings and executive departures, further exacerbated by the economic impact of the pandemic.

Frasers Group had reportedly been in discussions with Authentic Brands Group to secure a licensing deal for Ted Baker, potentially adding it to a portfolio that includes Flannels, Game, and Jack Wills. The deal was also rumoured to involve Reebok, another brand owned by Authentic. However, the lack of progress in negotiations has now led to the closure of Ted Baker’s remaining stores, leaving the future of the brand in the UK uncertain.

Administrators from the advisory firm Teneo, who are overseeing NODL’s administration, have declined to comment on the situation. Both Frasers Group and Authentic Brands Group have also been contacted for further comments.