In news first broken by Sky, the Authentic Brands Group-owned holding company and UK and European operator of Ted Baker, No Ordinary Designer Label, has filed a notice of intent to appoint Teneo Financial Advisory to manage an insolvency process. As the extent of the issues impacting the business’s ability to trade is unravelled, this could well result in a number of store closures and job losses in the UK.
In what has turned into a complex saga, the Ted Baker business has been challenged since its founder, Ray Kelvin, left under a cloud in 2019. Authentic Brands Group (ABG) acquired the globally recognised Ted Baker brand and business in October 2022 for £211m.
ABG then moved to license the Ted Baker UK and European stores and eCommerce operation to a Dutch business, AARC, in a deal it supported with a short-term loan. In February, ABG terminated the AARC contract following AARC’s alleged failure to inject funds into the venture and meet its financial obligations.
In a statement, John McNamara, Authentic Brands Group chief strategy & transition officer, said that No Ordinary Designer Label had built up a significant level of arrears during the tie-up with AARC and that the damage done was too much to overcome. “We wish there could have been a better outcome for the Ted Baker employees and stakeholders,” he said, adding, “It is hopefully some consolation for customers that Ted Baker will continue to trade online and in stores.”
Meanwhile, Ted Baker will continue to trade, and customer orders will be fulfilled as employees await news of possible lay-offs.
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