Ted Baker to Close 15 UK Stores and Cut 245 Jobs Amid Administration Process

High street fashion chain Ted Baker is set to shut down 15 of its stores in the UK and lay off 245 employees following its owner’s plunge into administration.

Administrators for No Ordinary Designer Label (NODL), the brand’s parent company, have confirmed that the closure of 11 stores will take place by April 19, resulting in 120 job losses. Additionally, 25 head office positions are being eliminated, with four stores that were already on the verge of closing set to shutter imminently, affecting 100 more jobs.

The ownership of the Ted Baker intellectual property lies with US-based Authentic Brands Group, with NODL serving as the UK arm of the brand. The recent administration stemmed from financial difficulties arising from a partnership with Dutch firm AARC that terminated in January.

The administrators have deemed the 15 stores slated for closure as non-profitable even with rent reductions, asserting that the shutdowns are vital to enhance the company’s future profitability. Danni Hewson, from investment platform AJ Bell, expressed that while the Ted Baker brand still resonates with consumers, its appeal may be waning among younger demographics.

Hewson hinted at a possible acquisition by Next, which already has ties with Ted Baker. Joint administrator Benji Dymant emphasized the need for these closures to strengthen the business as Authentic Brands seeks new UK and European partners to revitalize the Ted Baker brand.