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Latest NewsRetailJob creation and lossesInsolvencyRedundancy

Fashion retailer Ted Baker to enter administration

by Ashleigh Webber 20 Mar 2024
by Ashleigh Webber 20 Mar 2024 Shutterstock
Shutterstock

Ted Baker is set to go into administration, putting hundreds of jobs at risk of redundancy.

US-based owner Authentic Brands Group, which has owned the high street fashion brand since 2022, has filed a notice to appoint restructuring firm Teneo Financial Advisory to act as the administrator for No Ordinary Designer Label – the holding company for Ted Baker in the UK and Europe.

It blamed “damage done” during a tie-up with Dutch firm AARC for its troubles, which Authentic said was “too much to overcome”. AARC ran Ted Baker’s shops and online business, but the deal ended in January.

Ted Baker administration

Supporting employees following redundancy: a guide for HR

Survivor’s guilt: supporting staff who have avoided redundancy

It is expected to continue trading through administration, and no job losses or store closures have been announced yet. Ted Baker employs about 975 staff and runs 46 stores in the UK and Europe.

Authentic Brands Group chief strategy and transition officer John McNamara said: “We wish that there could have been a better outcome for the Ted Baker employees and stakeholders.”

In 2019 former Ted Baker CEO Ray Kelvin was forced to resign following allegations of “forced hugging” and claims that he had kissed employees’ ears. It was reported that HR “did nothing” with reports of harassment.

Ted Baker is the latest high street casualty, as retailers grapple with reduced demand and soaring overheads. The Body Shop recently announced store closures and hundreds of job losses as it went into administration, while thousands of jobs at Wilko were lost when it closed last year.

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Recent figures for England and Wales revealed that company insolvencies reached a 30-year high in 2023, with 14% more recorded than in 2022.

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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