29th July 2024
Ted Baker has now announced that it is to close all its UK stores.
8th April 2024
Administrators announce that Ted Baker is to close 15 UK stores (of which ”have no prospect of being returned to profitability, even with material rent reductions”) and cut 245 jobs.
Of this, 11 stores will close by 19 April, resulting in the loss of 120 jobs.
Then 25 roles from head office will go along with a further 4 stores, impacting the remaining 100 jobs.
For the full list of closing stores:
22nd March 2024
Teneo has been appointed as administrator of No Ordinary Designer Label (NODL) Limited – the company of which runs 46 Ted Baker stores in the UK along with a website and concessions.
NODL has approx. 975 employees.
Authentic Brands, which licenses the Ted Baker brand to the NODL, is in advanced discussions with potential buyers for the company.
Reported reasons for the appointment of administrators are the struggles the firm faced following damage done during a partnership and a high level of arrears built up during a partnership with AARC Group. At the end of January 2024 AARC and NODL cut ties.
19th March 2024
It has been reported that Ted Baker, the clothing retailer, has filed a Notice of Intention to Appoint Administrators. This move is designed to give it a chance of recovery by protecting it from creditors legal actions for a 10 day period. An injection of capital or a sale is hoped to be achieved during this period.
A filed winding up petition (subsequently withdrawn) forced Ted Baker’s hand.
This latest move comes after the company delisted from the Stock Exchange and was sold to US-based Authentic Brands Group (ABG) for a knockdown price of £210m. This follows a similar pattern to The Body Shop that was also bought out by private equity and then months later went into administration.
The likely reason is that these companies have been loaded with lots of secure debt which cannot be compromised by a CVA. Property costs, HMRC, and suppliers are unsecured and can be bound by the terms of a CVA. So, in essence, it wasn’t expensive shop premises that have caused problems but indebtness.
Ted Baker has suffered, like many other retailers, by the lockdowns, cost of living crisis and has borrowed money to try and survive.
John McNamara, chief strategy officer for Authentic Brands Group, said: “We wish that there could have been a better outcome for the Ted Baker employees and stakeholders. We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began.”
The company employs more than 900 staff and currently operates 46 stores across the country, as well as online and through department store concessions.
There has not been an announcement on any redundancies yet.
As Ted Baker enters formal insolvency, stakeholders often face significant uncertainty. Here is a breakdown of the legal framework and what it means for those affected.
Administration is a powerful statutory process governed by the Insolvency Act 1986. It is triggered when a company is insolvent and can no longer meet its debts. An independent Licensed Insolvency Practitioner (IP) is appointed to take control from the directors. A key feature is the statutory moratorium—a legal “shield” that instantly stops all legal actions, such as winding-up petitions or bailiff visits, providing the “breathing space” needed to rescue the business or achieve a better result for creditors than immediate closure.
The law dictates a strict hierarchy for the distribution of funds. Fixed charge holders (typically banks with security over property) are paid first. Once the administrator’s fees are covered, preferential creditors are next; this includes employees (for specific arrears) and HMRC for taxes like VAT and PAYE. Following these are floating charge holders, and finally, unsecured creditors—which include trade suppliers and customers—who are at the back of the queue and frequently receive only a small fraction of their debt.
Entering administration does not mean all jobs are instantly lost. For the first 14 days, the administrator assesses the company’s viability and may make redundancies. If a member of staff is kept on past this 14-day window, the administrator “adopts” their contract, meaning their ongoing wages and rights become a priority expense. Those made redundant can claim for unpaid wages and notice pay via the Redundancy Payments Service if the company has insufficient assets to cover these costs.
Suppliers and customers are generally unsecured creditors. Suppliers should stop granting credit under old agreements and negotiate “pro-forma” (upfront) terms for any new supply to the administrator. For customers, deposits and gift cards are rarely honoured. However, those who paid over £100 via credit card may be protected under Section 75 of the Consumer Credit Act and should contact their bank immediately to initiate a claim.
Written ByRobert Moore
Marketing Manager
Rob has over two decades of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at RMT to develop strategic marketing programmes to support the business plan and drive more company rescues.
A guide for redundant employees
A guide for redundant employees
If Your Retail Business Is Struggling A CVA Could Save It
If Your Retail Business Is Struggling A CVA Could Save It