Following today’s news that Ted Baker filed a notice to appoint Teneo Financial Advisory as administrators, 18 months after being acquired by Authentic Brands Group;

Louise Deglise-Favre, Apparel Analyst at GlobalData, offers her view:

“Ted Baker has long been financially struggling, due to the brand’s inability to modernize and adapt its offering and image to fulfil the post-pandemic consumers’ needs. Authentic Brands Group only acquired the business in October 2022 but has failed to turn its fortunes around, with Ted Baker’s ranges still mainly focusing on formalwear and occasionwear, despite the boom in demand for casual, versatile apparel. Its distinct product handwriting has lost appeal and its premium positioning has been tainted by frequent discounting.

“The brand’s administration means it will be up for grabs by potential buyers, with Next the most likely to be willing to snap it up, as it is already the licensing partner for Ted Baker’s childrenswear, lingerie, and nightwear, so it would be relatively easy to integrate the rest of the brand’s offer into its own. M&S could potentially be interested, as it already sells Ted Baker menswear through its third-party marketplace, and Frasers Group could also be ready to pounce to support its elevation strategy.

“Any future owner of Ted Baker would have to make significant investments into the brand’s product offering and marketing to boost its desirability and re-establish it as a key British player, so it is unlikely any deal will include its existing stores due to their high costs. New owners would also need to ensure the brand redefines its core target customer for a more precise brand positioning as well as incorporating more wearable pieces and justifying its higher prices through superior quality and fit.”