By the close of business on Tuesday 20 August 2024, all of Ted Baker’s UK and Irish stores will shut following administration.
The end of trading for the remaining 31 sites puts more than 500 jobs at risk, as reports suggest negotiations between Frasers Group and Ted Baker’s owner Authentic Brands Group (ABG) have stalled.
In March, ABG appointed Teneo Financial Advisory as administrators. Then in April, the administrators shuttered 15 stores and cut 245 jobs.
ABG only bought the fashion chain less than two years ago for £211mn. In February, ABG terminated its relationship with AARC, the Dutch firm that it hired to run Ted Baker’s stores and ecommerce operations in the UK and Europe.
The RetailX UK Luxury report in 2022 highlighted early signs of trouble for the brand, which was set up in Glasgow in 1988. The report found in 2021 Ted Baker revenues were more than a third lower than the same time pre-pandemic. Ecommerce sales also fell to £63.6mn in 2021.
Furthermore, there were technical problems with the launch of the new ecommerce platform at the same time as shoppers returned in-store. At the time Ted Baker said that data integration issues had been a factor, affecting both product availability and the effectiveness of digital marketing.
Footfall to its stores in travel locations and in city centres also remained low. There has been a raft of its own store closures, as well as 28 concessions in branches of House of Fraser, which it supplied on a wholesale basis.
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox and why not follow us on LinkedIn to receive the latest updates on our research and analysis.
