Ted Baker, the renowned fashion brand that began as a men’s clothing label in Glasgow in 1988, is set to close its remaining 31 stores in the UK this week, placing over 500 jobs in jeopardy. Founded by entrepreneur Ray Kelvin, the brand became well-known for its distinctive advertising and floral designs. However, the company has struggled in recent years, grappling with mounting competition, a shift toward online shopping, and the departure of Kelvin in 2019 following allegations of inappropriate workplace behavior.
After entering administration in March due to financial losses, Ted Baker has already closed 15 of its UK stores, leading to approximately 245 job losses. The final store closures, expected to be completed by Tuesday, mark a significant downturn for the brand, which was acquired by US-based Authentic Brands Group (ABG) for a reduced price of £211 million just two years ago.
Despite the closures, Ted Baker’s products will still be available through wholesale partners, including John Lewis and House of Fraser. ABG, which owns several other fashion brands such as Juicy Couture and Reebok, retains ownership of Ted Baker’s intellectual property and had been seeking a new partner to manage the brand’s retail and online operations in the UK and Europe. However, negotiations with potential partners, including Frasers Group, led by Sports Direct founder Mike Ashley, have reportedly fallen through.
The wider UK fashion industry has faced significant challenges this year, with unseasonably cold weather in the spring and early summer and the ongoing cost of living crisis affecting consumer spending on non-essential items. Ted Baker’s parent company, No Ordinary Designer Label (NODL), reported a nearly £44 million loss for the year ending in January, with sales dropping by almost 8% to £176 million.
While the closures impact the UK and Europe, Ted Baker’s stores in the US, Asia, the Middle East, and its licensed products, including childrenswear and lingerie run by British retailer Next, remain unaffected. ABG has been exploring options for the brand’s future since January, when it ended its partnership with Dutch company AARC, which had been operating Ted Baker’s retail stores and website in the UK and Europe. Following NODL’s administration in March, ABG cited irreparable damage caused during its association with AARC as a key factor in the brand’s decline.
