TED BAKER SHARES DIVE AS DEAL TALKS COLLAPSE

TED Baker shares slumped after a second potential buyer walked away from the business.

The fashion chain said its ‘preferred’ bidder, understood to be US-based Authentic Brands, has pulled out of a sale process.

It sent shares tumbling 18.4pc, or 25.2p to 111.6p. Ted Baker has been up for sale since April after it rejected two takeover approaches from American private equity firm Sycamore Capital Partners.

Sycamore pulled out last month and Ted picked Authentic, which owns brands including Reebok and Brooks Brothers, to enter the final stages of a deal.

Ted Baker bosses said Authentic’s reason for dropping out was ‘not linked to its due diligence review’ of the business. It also said it has had ‘a number’ of other proposals, which its board will now look at again.

It added that it may scrap the sale process at any time. The share price plunge leaves Ted Baker valued slightly ahead of where it was before Sycamore’s interest first emerged.

But it is around 96pc lower than it was in 2018 before the business was hit by scandals and profit warnings.

It said last month its annual losses had narrowed as the easing of Covid restrictions boosted sales of office wear and party outfits.