If a company goes into administration, it is allowed to start the formal process of making changes to its organisation to try to avoid having to close its business and sell the things it owns.
British fashion chain Ted Baker is set to go into administration.
It will, however, continue to trade and fulfill customer orders, the Authentic Brands Group (ABG), its US owner, said.
ABG said ‘damage done’ during a tie-up with another firm was ‘too much to overcome’ and it is in ‘advanced ‘discussions’ with several potential buyers for the brand.
Ted Baker has about 975 employees and runs 46 stores in the United Kingdom and Europe, and an e-commerce platform and concession stores. It also has licensing agreements in place for stores in cities in Asia and the Middle East.
ABG said ‘damage done’ during a tie-up with another firm was ‘too much to overcome’ and it is in ‘advanced ‘discussions’ with several potential buyers for the Ted Baker brand.
In January this year, ABG terminated its tie-up with the Dutch company AARC, which operated Ted Baker’s retail stores and website in the UK and Europe. No Ordinary Designer Label (NODL), Ted Baker’s holding company in the UK and Europe, had ‘built up a significant level of arrears’ during the tie-up with AARC.
“Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome,” ABG chief strategy and transition officer John McNamara was quoted as saying by British media reports.
Fibre2Fashion News Desk (DS)