Fashion retailer Ted Baker is set to shut down all its outlets in the UK and Ireland, thus terminating its longstanding presence on high streets and potentially causing over 500 job losses. By the close of business this Tuesday, all of its existing 31 shops across said regions will cease operations while its online site has also been taken offline.
Ted Baker, founded by Ray Kelvin in 1988, first opened its doors in Glasgow. Since then, it has become famous for the unique patterns and floral designs on its clothing and accessories. However, the business future became precarious following the liquidation of the controlling firm of its UK shops, No Ordinary Designer Label Limited (NODL), in March.
American firm Authentic Brands, the owner of Ted Baker’s intellectual property claimed that the financial problems faced by the business were insurmountable despite sustained effort. A partnership with Dutch entity AARC Group and the subsequent accumulation of significant arrears were cited as principal reasons for the crisis.
Ted Baker had earlier noted economic downturns in the past years, highlighted by a slump in customer demand and supply chain issues in the wake of the Covid pandemic. Its inability to save its physical stores is set to impact hundreds of jobs.
As it stands, around 513 workers in the UK, including those at the head office, and 78 in Ireland could potentially lose their jobs due to the impending closure. Earlier this year, already, 245 employees were let go following the shutdown of 15 stores.
In the meantime, the Ted Baker UK website has stopped accepting orders, with customers given a fortnight to send back their online purchases. While Authentic Brands had earlier expressed its intent to find fresh UK and European partners to handle the brand, reports of a possible deal with Frasers Group has been dismissed. Authentic Brands, famed for owning global brands like Juicy Couture and Reebok, purchased Ted Baker for £211 million (€247 million) in 2022 but refused to comment on the confirmed shop closures this week.
Ted Baker remains in collaborations with over 30 partners worldwide, which have been unimpacted by the administrative proceedings in the UK and Ireland. These partnerships span across North America, Asia and the Middle East. – PA