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Ted Baker founder Ray Kelvin considers backing PE deal to take it private

Lauretta Roberts
22 July 2019

Ted Baker founder Ray Kelvin, who was obliged to stand down from the listed company earlier this year over allegations of harassment from staff, is reported to be considering backing a private equity buyout of the fashion and lifestyle brand.

Kelvin founded the business 30 years ago specialising in men's shirts and named it after his  alter ego. It went on to become a global fashion and lifestyle brand offering menswear, womenswear, childrenswear, homewares, fragrance and watches among other categories, and was floated in 1997.

Despite standing down following the allegations made by staff of Kelvin enforcing a "hugging culture" at the company, Kelvin retains a stake in the business of around 35%. Any future deal on the business would require his approval and the Mail on Sunday reports he has been quietly sounding out private equity firms on the possibility of taking the company private.

It is not known whether any formal process to buy the FTSE 250 business is underway or whether advisers have been appointed. However it is believed that the existing management team, led by Lindsay Page who stepped up from COO to CEO in April, would remain in place.

Ted Baker, while not immune to the current challenges facing retail (it issued a profits warning in June), has been one of its more robust performers and a retail source told the Mail on Sunday that "the bottom line though is that Ray Kelvin is Ted Baker". Given then circumstances of his departure, however, he is likely to be required to keep an arm's length position should any deal be agreed.

“Private equity firms will find a way to make that work even if Ray takes some arm’s-length or advisory role. But it would be very difficult while it remains listed on the stock exchange," the source said.

Kelvin took a voluntary leave of absence at the end of last year when an petition started by members of staff was made public in which it was alleged staff were forced into hugging the CEO and had obliged to sit on his knee. In March Kelvin resigned and an independent investigation revealed the the company needed to shake up its HR practices, though no specific information was published about Kelvin's actions.

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