Ted Baker Announces 11 Store Closures in UK, Seeks New Operating Partner
Ted Baker Announces 11 Store Closures in UK, Seeks New Operating Partner
Fashnopsis:
- 15 UK Stores Closing: Ted Baker shutters unprofitable locations, impacting 220 jobs.
- Profit First: Closures aim to improve financial health as stores showed no turnaround potential.
- New Partner Needed: Owner seeks fresh blood to manage UK & European operations.
- Challenges Continue: News follows administration and job cuts, highlighting ongoing struggles.
Ted Baker, the British fashion brand, has confirmed the closure of 15 stores across the UK. This move follows the administration of its UK arm, No Ordinary Designer Label (NODL), in March 2024.
Loss-Making Stores to Shut Down by April 19th
Eleven stores identified as consistently unprofitable will cease trading by April 19th. This closure will result in a workforce reduction of 120 store employees. Additionally, 25 head office positions will be eliminated “to reduce central costs,” according to the administrators, Teneo.
Reason for Closures: Focus on Profitability
Teneo justifies the closures as a necessary step to ensure the company’s future financial health. A review concluded that the affected stores “have no prospect of becoming profitable” even with significant rent reductions.
The impacted stores are located in Birmingham, Bristol, Bromley, Cambridge, Exeter, Leeds, Liverpool, London Bridge, Milton Keynes, Nottingham, and Oxford.
Landlord Notices Force Additional Closures
Adding to the company’s woes, four additional stores received closure notices from landlords before the administration process began. These stores, situated in Bicester, London (Brompton Road and Floral Street), and Manchester, will also shut down in the coming weeks, leading to another 100 job losses.
Authentic Brands Group Seeks New Partner
Authentic Brands Group (ABG), which acquired Ted Baker in 2022, is currently searching for a new operating partner to manage the brand’s retail and e-commerce operations in the UK and Europe.
ABG Statement on Closures and Future Plans
In a statement, Benji Dymant, a joint administrator at Teneo, acknowledged the negative impact on employees but emphasized the closures’ benefit for the company’s overall performance. He assured continued discussions with potential operating partners “to bring the Ted Baker brand back to health.”
Turbulent Past Few Years for Ted Baker
The administration of NODL stemmed from a tumultuous relationship between ABG and its previous collaborator, AARC. ABG terminated the agreement due to AARC’s “consistent failures” to meet financial obligations.
This administration comes nearly two years after ABG’s £211 million acquisition of Ted Baker. Initially, ABG aimed to integrate its third-party partner model and expand the brand globally through licensing deals.
However, media reports in mid-2023 indicated job reductions at the head office as part of a strategic turnaround plan post-acquisition.
These store closures mark a significant shift for Ted Baker as the brand navigates financial difficulties and seeks a new operational strategy under ABG’s ownership.
Image Credits: Tedbaker/Wikipedia
