Ted Baker owner exploring UK store closures to reduce costs
The US owner of fashion chain Ted Baker is reportedly considering a major cost-cutting plan that could see a wave of store closures and put jobs at risk.
Fashion group Authentic Brands is close to hiring restructuring experts for the company as part of efforts to mitigate soaring rental prices across its UK locations, The Sunday Telegraph reported.
Consultants at Teneo are reportedly the top candidates to lead the advisory work.
Authentic revealed last week that it had cut ties with Dutch firm AARC, which it appointed to manage Ted Baker’s UK and European stores, after it “failed to inject promised funding into the business”.
Authentic added: “A new independent board will explore all options… in consultation with us, key stakeholders and where necessary advisers. No decisions have been made.”
The company is reportedly considering a Company Voluntary Arrangement (CVA), which has been used by struggling high street brands to avoid insolvency by abandoning leases on stores and agreeing rent reductions with creditors.
The news comes as retailers battle a sharp fall in demand. Latest government data showed retail sales volumes fell 3.2 per cent in December – the biggest monthly drop since the Covid-19 pandemic.
Ted Baker has around 80 to 90 stores and concessions in the UK.
Authentic, which owns almost 50 brands including Reebok and Forever 21, snapped up the company in late 2022 for £211m.
CityAM approached Authentic and Teneo for comment.