"Damage done" by retail partner led to Ted Baker administration, says ABG

Ted Baker owner Authentic Brands Group has said that the "damage done" by the failed retail partnership with Dutch company AARC led to the administration of the British-founded fashion brand, which has left almost 1,000 jobs at risk.

American brand house Authentic Brands Group (ABG) acquired Ted Baker for £211 million in August 2022 leading to its delisting from the London Stock Exchange.

Per its usual modus operandi ABG, which also owns brands such as Reebok and Juicy Couture, promptly set about licensing various parts of the Ted Baker business from design to the operation of its retail stores, cutting swathes of head office roles in the process.

Little-known retail management firm AARC was selected last April to run Ted Baker's 80 UK retail stores, European stores and e-commerce. But it quickly ran into financial trouble and ABG was obliged to step in and offer financial support.

This was not enough to stabilise the situation and, according to ABG, AARC failed to provide promised funding for the Ted Baker retail business. ABG pulled the plug on the arrangement last month but promised it was still committed to developing the Ted Baker brand.

On 19 March, No Ordinary Designer Label (NODL), the company which trades as Ted Baker, filed a motion to appoint administrators.

In a statement ABG confirmed the move but did not say if any immediate redundancies or store closures were on the cards.

Ted Baker at centre:mk

“Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome,” said ABG’s chief strategy and transition officer John McNamara.

“We wish that there could have been a better outcome for the Ted Baker employees and stakeholders. It is hopefully some consolation for customers that NODL will continue to trade online and in stores.

“We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began.”

Following its acquisition of Ted Baker, ABG appointed Aldo to develop footwear and handbags while brand development group PDS also acquired the Ted Baker Design Group, to handle design and merchandising, as part of its strategic partnership with ABG.

The administration marks another troubling chapter in the recent history of Ted Baker, which was once one of the leading lights on the British high street.

In 2019, Ted Baker business parted ways with its founder Ray Kelvin after allegations of harassment, which he has always denied. Kelvin founded the brand in Glasgow in 1988.