Ted Baker Faces Administration Putting Hundreds of Jobs in Jeopardy

Hundreds of jobs on the high street are in jeopardy as Ted Baker's operations teeter on the edge of Administration.

According to Sky News, No Ordinary Designer Label, trading under the Ted Baker brand, has initiated the process of appointing Administrators, raising concerns about potential store closures and job losses.

While the exact scale of the impact remains uncertain, sources suggest that Ted Baker will continue trading during the insolvency process. This move comes following the abandonment of a brand licensing partnership with a Dutch company, AARC, amidst disputes.

Ted Baker delisted from the London stock market approximately 18 months ago after being acquired by ABG for around £210m. Despite efforts to stabilise its finances, including job cuts and fundraising, the company's struggles persisted.

ABG, which also owns Forever21 and has partnerships with prominent brands like David Beckham's, experienced a surge in valuation, particularly after selling a controlling stake to a division of BlackRock for $870m in 2019.

John McNamara, ABG's chief strategy and transition officer, expressed regret over the situation, acknowledging the challenges faced during the period when NODL accrued significant arrears under AARC's management. He reiterated ABG's commitment to finding a new partner to support and expand the Ted Baker brand in the UK and Europe.

In the midst of uncertainty, the focus remains on preserving the brand's legacy and mitigating the impact on employees and stakeholders, while Ted Baker continues to operate online and in its stores.

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