Ted Baker owner considers store closures

THE American backer of Ted Baker has begun exploring a radical shake-up that could result in substantial store closures and job losses.

Authentic Brands, which rescued the fashion chain two years ago amid mounting losses, is close to appointing experts to oversee a restructuring as it seeks to reduce a punishing rent bill on scores of Ted Baker’s UK stores.

The retailer has hundreds of stores and concessions globally, of which between 80 and 90 are in Britain. It is believed consultants at Teneo are favourites to lead the negotiations.

A City source said: “Ted Baker is one of the few big high street retailers that is yet to reset rents to reflect current market rates. It is hugely over-rented.”

Authentic Brands, founded by retail turnaround specialist Jamie Salter, owns nearly 40 fashion, sportswear and celebrity brands. It swooped on Ted Baker in a £211m deal in late 2022. It retained the ownership of its brand and intellectual property, then appointed Dutch outfit AARC to run Ted Baker’s stores in the UK and Europe. However, on Friday Authentic said it had severed ties with AARC because it had failed to “meet its financial obligations”.

The company said: “We have removed a licensing partner after it failed to inject promised funding into the business. A new independent board will explore all options… No decisions have been made.”

One of the cost-saving measures that Authentic is expected to look at in detail is a Company Voluntary Arrangement, which enables struggling high street businesses to jettison expensive leases and abandon branches, or to secure large rent reductions.