July 26th 2024.
Earlier this year, news broke that Ted Baker, the beloved fashion chain known for its signature floral prints and popular among young professionals, had gone into administration. This came as a shock to many, as the Scottish design house, founded in 1987, once boasted a large staff and over 500 stores worldwide.
Unfortunately, after years of scandals, poor financial management, and the impact of the coronavirus pandemic, Ted Baker's owners were left with no choice but to call in the administrators. Sources have revealed that all remaining Ted Baker stores could be closing their doors within the next three weeks, according to The Sun.
Before going into insolvency, Ted Baker had a total of 46 stores in the UK and employed almost 1,000 people. However, with 15 stores already closed and 254 employees out of work, it seems that more job losses are on the horizon when the remaining stores shut down for good.
The tabloid reports that the staff at these stores will likely lose their jobs once the shutters are pulled down for the last time. In April 2024, a list of UK Ted Baker stores that have already closed down was released, including Birmingham Bullring, Bristol, Bromley, Cambridge, Exeter, Leeds, Liverpool One, London Bridge, Milton Keynes, Nottingham, Oxford, Bicester, Brompton Road in London, Floral Street in London, and Manchester Trafford.
While the plans are not yet finalized, sources have revealed that the intention is for Ted Baker to disappear from the high street forever. This uncertainty over the brand's future began in March when a deal between its American owners, Authentic Brands, and a Dutch operating partner fell through.
Attempts were made by the administrator Teneo to negotiate a buyout with House of Fraser, but this ultimately fell through as well. It's clear that Ted Baker's sales have been on a steady decline for years, and the brand has faced numerous challenges.
In 2018, founder Ray Kelvin resigned as CEO following allegations of a "forced hugging" policy by hundreds of staff members. This dealt a significant blow to the brand's reputation. The following year, a massive accounting error was uncovered, leaving a £58 million hole in Ted Baker's balance sheet.
In early 2020, amid the pandemic, the majority of Ted Baker's employees, about 2,000 people, were furloughed, from the staff behind the tills to those at the head office. As of now, neither Ted Baker nor Teneo have provided any comments on the situation. It remains to be seen what the future holds for this once-thriving fashion chain.
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