Friday, November 22, 2024

Ted Baker shops to disappear from UK high streets after collapse of chain

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Ted Baker shops are to disappear from British high streets by the end of the day, some 36 years since the fashion chain first opened in Glasgow.

The fashion chain’s 31 remaining stores in the UK and Ireland are expected to have shut down by Tuesday, while the website has also been pulled.

Ted Baker was founded by Ray Kelvin in 1988, and the brand’s clothing and accessories are widely recognised for their patterns and florals.

Susannah Streeter, head of money and markets for Hargreaves Lansdown, said the nationwide stores had come to a “sorry conclusion in a very tough fashion retail environment”.

Its future was put at risk when the firm behind its UK shops, No Ordinary Designer Label Limited (NODL), collapsed into administration in March.

A different American company, Authentic Brands, which owns Ted Baker’s intellectual property, said that despite “tireless efforts” it could not “overcome” the financial issues the business faced.

Authentic blamed the process on “damage” done during a partnership with Dutch company AARC Group, and the “significant level of arrears” that had built up during the association.

Ted Baker had also flagged economic challenges in recent years, having faced weaker consumer demand and difficulties in its supply chain, after being among the luxury retailers to take a hit during the Covid pandemic.

Ms Streeter said: “Ted Baker shot into the fashion limelight with tailored ranges that quenched a thirst for luxury amid mid-market shoppers.

“Although lockdowns were like a bad dream for many retailers, they were a nightmare for Ted Baker, which relied heavily on formal and occasion wear and did not have an effective online operation to rely on.

“The cost-of-living squeeze on fashion budgets was another hammer blow for its mid-market ranges, particularly with online fashion giants like Shein offering highly creative garments at a fraction of the price.”

The failure to save the shops puts hundreds of jobs at risk.

Some 513 employees of NODL across the UK and in its head office, and 78 in Ireland, are expected to be affected by the remaining closures.

About 245 staff were made redundant after 15 shops were shut earlier in the year.

Ted Baker employed 975 people in the UK before its administration (Ted Baker/PA)

Ted Baker’s UK website has also been pulled, and customers told it is “not taking orders right now”, and that they have 14 days to return  orders made online.

Authentic previously said it was hoping to find new UK and European operating partners to run the Ted Baker brand, which is currently sold through department stores and retailers such as John Lewis and House of Fraser.

There had been reports that a licensing partnership could be struck with Mike Ashley’s Frasers Group, but it is understood that the two companies are no longer in talks.

Authentic, the US-based firm also behind global brands including Juicy Couture and Reebok, bought Ted Baker for £211 million in 2022.

It did not comment on the confirmation of shop closures this week.

Ted Baker continues to have more than 30 licensing partners globally that are unaffected by the UK and Ireland administration, including in North America, Asia and the Middle East.

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