Hundreds of jobs at risk as fashion brand Ted Baker enters administration amid financial woes

In a significant blow to the high-street fashion industry, Ted Baker, a renowned fashion chain, has announced its entry into administration, casting a shadow of uncertainty over the future of approximately 975 employees. This development comes after Authentic Brands Group, the owner of Ted Baker since 2022, cited irreparable damage from a previous partnership as a major contributing factor to the decision.

Despite the impending administration, Ted Baker vows to continue its operations, ensuring that customer orders remain unaffected during this tumultuous period. Authentic Brands Group has also revealed that it is engaged in advanced discussions with several potential buyers, sparking a glimmer of hope for the embattled brand.

Established in Glasgow in 1988 as a menswear brand, Ted Baker has expanded its presence significantly, boasting 46 stores along with an e-commerce platform and numerous department store concessions. The brand’s global footprint extends to the UK, US, Asia, and the Middle East through various licensing agreements.

The partnership with Dutch firm AARC, which was responsible for Ted Baker’s European retail and online operations, terminated in January, leaving the company’s UK and European holding company, No Ordinary Designer Label (NODL), in a precarious financial position. According to John McNamara, Authentic Brands Group’s chief strategy and transition officer, the fallout from this partnership was insurmountable.

This announcement marks the latest chapter in Ted Baker’s turbulent history, which saw founder Ray Kelvin resign in 2019 following allegations of misconduct. The brand suffered further instability with the departure of Kelvin’s successor, Lindsay Page, and chairman David Bernstein in the wake of a profit warning and an accounting error.

As Ted Baker navigates through these challenging times, the focus remains on securing a positive outcome for its employees and stakeholders. The fashion industry watches closely as the brand strives to maintain its legacy and continue serving its loyal customer base amid ongoing financial challenges.