It’s becoming increasingly likely that Frasers Group will secure a buyout of the UK operations of Ted Baker, casting doubt on the fate of the employees at its main office.
Those inside the industry reveal that the anticipated acquisition would not extend to the brand’s London-based corporate staff, according to Drapers.
At present, a workforce just shy of one hundred remains at the retailer, which has undergone three waves of job cuts since the appointment of Teneo as its administration firm this year.
It is understood that Teneo has engaged Hilco, a restructuring advisory firm, to assist in the liquidation of inventory during this transitional period.
A communication sent to the Ted Baker employees, which Drapers had the chance to review, highlights the anxiety resulting from workforce reductions:
“With the ongoing adjustments in staffing, a sense of uncertainty may be growing among many. According to our forecasts, we expect to continue our present trading approach until mid-August. The team that remains beyond May 31st, both in our head office and retail sectors, will be responsible for executing this plan.”
The message added: “As we move forward with our operations, the mid-August goal will be re-evaluated for clarity, and we are committed to keeping everyone informed as often as possible.”
This development follows Ted Baker’s recent shut down of its stores and e-commerce in North America, coinciding with its fall into administration.
Last week saw tension between Ted Baker’s largest creditor and the company’s administrators, stemming from accusations of a potential conflict of interest.
Secure Trust Bank, the brand’s principal financier, sought to dismiss Teneo following revelations by The Times that Teneo’s owning entity is a private equity group with an interest in Authentic Brands, which owns Ted Baker.
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