Clothing: Ted Baker brand to file for bankruptcy in Europe

British clothing chain Ted Baker will file for bankruptcy in the UK and Europe due to mounting payment arrears and a difficult retail environment, according to a statement obtained by AFP on Tuesday.

“We would like a better outcome for Ted Baker’s employees and stakeholders,” John McNamara, director of strategy and transition at Authentic Brands Group (ABG), the brand’s parent company, lamented in a statement. “We remain focused on finding a new partner to support and grow the Ted Baker brand in the UK and Europe,” added Mr McNamara. According to the Guardian, around 1,000 jobs are at risk.

NODL, the holding company that operates the brand, filed a document in a London court on Tuesday indicating the group’s intention to place the clothing chain into receivership. On January 29, the licensing partnership with AARC was terminated after the latter failed to fulfill its financial obligations, the company explained.

ABG has provided additional funding while it explores options for the clothing chain and is in “advanced discussions with several operating partners” for the brand.

Search for new partners

While filing for bankruptcy and searching for new financial partners or a buyer, stores will continue to operate and the site will continue to accept orders. Wholesale operations in Europe and retail and wholesale operations in the United States continue to operate as normal and are not impacted by receivership.

The clothing chain was bought in 2022 for £211 million by American Authentic Brands Group (ABG), which owns sportswear brands Reebok and Juicy Couture, among others.

Founded in 1987, Ted Baker has been in crisis for years, suffering losses and was hit by a sexual harassment scandal involving founder Ray Kelvin, which led to his resignation and the resignation of the rest of the then management team in 2019.