British billionaire Mike Ashley is on track to become the new British partner of struggling fashion chain Ted Baker. Sources within the retail industry revealed on Wednesday that Frasers Group has been selected as the preferred partner for the chain, following the collapse of No Ordinary Designer Label (NODL), Ted Baker’s current UK licensing partner. Negotiations between Frasers and NODL’s administrators are expected to conclude in the coming days.
If the deal is finalized, it would add Ted Baker to Mike Ashley’s extensive portfolio of retail brands, which includes Evans Cycles, Gieves & Hawkes, House of Fraser, Jack Wills, and Sports Direct. Other potential bidders for the partnership reportedly included Next, while Ted Baker’s US licensing partner, OSL, had also expressed interest several weeks ago.
Despite the recent closure of 15 Ted Baker stores and the loss of over 200 jobs, the chain still has dozens of shops operating in the UK. The closure of these stores was a result of NODL’s administrator, Teneo, being forced to take action to address the company’s financial difficulties.
Ted Baker’s parent company, Authentic Brands Group, will work closely with Mike Ashley and Frasers if the deal is finalized. This latest development comes just 18 months after Ted Baker was delisted from the London stock market and acquired by ABG, led by entrepreneur Jamie Salter, for approximately £210m. The retailer has faced numerous challenges in recent years, including the departure of founder Ray Kelvin in 2019 amidst allegations of inappropriate behavior towards colleagues. It has also struggled with profit warnings, accounting mistakes, and the financial impact of the COVID-19 pandemic.
To bolster its financial position, Ted Baker cut hundreds of jobs and raised £100m in 2020. Upon Teneo’s appointment as administrator, ABG’s chief strategy and transition officer, John McNamara, stated, “Despite our tireless efforts, the damage incurred during NODL’s significant level of arrears under AARC was too great to overcome. We remain focused on securing a new partner to preserve and grow the Ted Baker brand in the UK and Europe, where it originated.” Frasers Group declined to comment on the potential partnership.
