Frasers, Next interested in Ted Baker's European retail arm - report

9th Apr 2024 13:00

(Sharecast News) - Mike Ashley's Frasers Group and Next have reportedly expressed an interest in purchasing Ted Baker's stricken European retail arm.

According to The Times, the UK retailing giants have contacted administrators at Teneo Advisory to explore a deal for all or parts of the collapsed business.

No Ordinary Designer Label, the fashion brand's retail and ecommerce business in the UK and Europe, was put into administration last month. Authentic Brands Group, which bought Ted Baker for £211m in 2022, said that "damage done" during a tie-up with another company was "too much to overcome".

The partnership with AARC, a little-known Dutch firm that ran Ted Baker's operations in the UK and Europe, ended in January. John McNamara, chief strategy and transition officer at Authentic, said that a "significant level of arrears" had built up.

PDS Group, the designer, supplier and wholesaler operator for Ted Baker in the UK and Europe, and OSL, the operating partner for the retailer's operations in North America, were not affected by the decision to appoint administrators.

In a statement on Monday, Ted Baker's administrators confirmed that 11 UK shops would close by April 19, resulting in the loss of about 120 roles. A further four shops would shut "in the coming weeks", resulting in 100 additional redundancies.

However, sources told The Times that some shops could be saved under a deal with Next or Frasers Group, both of which are understood to want to keep some of them.

It is understood that they have less than six weeks to submit a bid. A buyer could be announced within the next three weeks, according to an insider, The Times said.

Next is already the licensing partner for Ted Baker childrenswear, lingerie and nightwear.