The UK operator of Ted Baker has taken steps to appoint administrators, potentially endangering hundreds of jobs.
As per Sky News, No Ordinary Designer Label (NODL), the licensee of the brand in the UK and Europe from Authentic Brands Group (ABG), has initiated a process with Teneo Financial Advisory to oversee the insolvency of its UK operations.
This action, likely resulting in store closures and job cuts, follows ABG’s acquisition of the fashion chain for £211 million about 18 months ago.
Last month, ABG ended its association with AARC, the Dutch company managing Ted Baker’s stores and ecommerce in the UK and Europe.
In October, ABG extended a short-term loan to AARC to stabilize the business during financial challenges. However, ABG stated that AARC consistently failed to inject the promised funds and meet financial commitments.
John McNamara, ABG’s chief strategy and transition officer, said, “Despite our efforts, the financial strain accumulated during AARC’s tenure at NODL was insurmountable.”
He added, “While we regret the outcome for Ted Baker’s employees and stakeholders, NODL will continue trading online and in stores for customers’ benefit.”
“Our focus remains on finding a new partner to uphold and expand the Ted Baker brand in its home markets of the UK and Europe,” he concluded.
Teneo Financial Advisory declined to provide a comment.
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