Ted Baker, a prominent fashion chain on the High Street, is set to close 15 of its stores in the UK and eliminate 245 jobs, according to administrators.
Administrators overseeing the brand’s owner revealed that eleven stores will cease operations by April 19th, leading to the loss of 120 jobs.
Furthermore, 25 roles at the head office will be eliminated, along with the closure of four additional stores, which were already slated to shut down prior to the administration, impacting 100 positions.
No Ordinary Designer Label (NODL), the entity managing Ted Baker’s UK stores, enlisted administrators last month.
At the time of administration, Ted Baker employed approximately 975 workers in the UK, operating 46 stores, alongside its e-commerce platform and department store concessions.
Authentic Brands Group, a US-based company, holds the intellectual property rights to Ted Baker, with NODL serving as the UK brand’s holding company.
Following NODL’s plunge into administration, Authentic Brands attributed the downfall to insurmountable challenges arising from a previous partnership.
The partnership, which ended in January, had accrued substantial debts for NODL, prompting the decision to enter administration.
Administrators emphasized that the stores marked for closure lacked viability, even with significant rent reductions.
Danni Hewson, head of financial analysis at AJ Bell, noted that while Ted Baker’s brand still resonated with consumers, its appeal had diminished, particularly among younger demographics.
Hewson speculated that Next might emerge as a potential buyer for the fashion chain, given its existing ties with the brand.
Joint administrator Benji Dymant expressed regret over the impact on affected employees but highlighted the closures as a necessary step to enhance the company’s performance.
Authentic Brands remains engaged in discussions with potential operating partners in the UK and Europe to revitalize the Ted Baker brand.
The 11 stores slated for closure by April 19th include Birmingham Bullring, Bristol, Bromley, Cambridge, Exeter, Leeds, Liverpool One, London Bridge, Milton Keynes, Nottingham, and Oxford.
Additionally, four stores, including Bicester, London Brompton Road, London Floral Street, and Manchester Trafford, are expected to close in the upcoming weeks.
Founded in Glasgow in 1988 as a menswear brand, Ted Baker expanded its footprint across the UK and the United States.
The company also holds licensing agreements for stores in various cities in Asia and the Middle East.
