Save content
Have you found this content useful? Use the button above to save it to your profile.
image of ted baker store | accountingweb | Ted Baker downfall a warning for retailers amid tough high street conditions
iStock_resulmuslu_tedbaker

Ted Baker chain’s collapse signals worrying trend

by

As clothes retailer Ted Baker enters administration following leadership failures and bookkeeping problems, experts have warned there is no room for outmoded businesses in the modern retail sector.

10th Apr 2024
Save content
Have you found this content useful? Use the button above to save it to your profile.

Fashion chain Ted Baker has entered administration, with accounting experts warning more major names risk going under given the perfect storm of economic headwinds.

Around 245 jobs will go, administrators Teneo said, given there is no prospect of the retailer’s 15 stores earmarked for closure ever returning to profitability. 

Redundancies will also hit the group’s head office, with the shutterings and job losses to be phased in.

Authentic Brands owns the intellectual property of Ted Baker, and it said it would search for a new operating partner for the retail and online business in the UK and Europe, according to the administrators.

Ted Baker has struggled to match the heights of its peak popularity 30 years ago and has stumbled over corporate scandals, including the ousting of its founder, Ray Kelvin

In recent years it has announced a string of profit warnings and the discovery of a £58m black hole in its accounts due to an inventory miscalculation, with accounting experts noting the business suffered a fatal combination of micro- and macroeconomic failures.

Fashion victim

“Ted Baker appeared to have got itself into a difficult position not knowing what it stood for,” said Henry Page, restructuring and insolvency partner at Mercer & Hole.

Register for free to continue reading

It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can:


Content lock down, tick icon

View all AccountingWEB content


Content lock down, tick icon

Comment on articles


Content lock down, tick icon

Watch our digital shows and more

Access content now

Already have an account?

Replies (7)

Please login or register to join the discussion.

avatar
By JustAnotherUser
10th Apr 2024 15:52

Would have thought it was ready to be snapped up by Mike Ashley but then read "Authentic Brands owns the intellectual property of Ted Baker" alas a quick google search shows...

https://www.cityam.com/next-and-mike-ashleys-frasers-group-mull-ted-bake...

Thanks (0)
avatar
By Self-Employed and Happy
11th Apr 2024 09:31

Much like Superdry kids don't want to be wearing the same brands their parents wore at the same age, they've both struggled to capture the imagination of the next generation and therefore have failed.

Thanks (0)
avatar
By listerramjet
11th Apr 2024 09:37

Thing is, this is no more than a straightforward business collapse with the market doing its job of reallocating scarce resources. All those other words are hot air and padding!

Thanks (1)
Replying to listerramjet:
avatar
By FactChecker
11th Apr 2024 13:40

Quite ... "Those able to adapt quickest will find the most ongoing success, he said"

Is this really intended to be a radical concept in the retail sector (just ask the street traders)?

Thanks (2)
Replying to FactChecker:
avatar
By johnjenkins
11th Apr 2024 16:13

What is an "outmoded business"? To me if you are selling what people want then no problems. My wife shops regularly, walks into a shop and walks out again as they don't either do what she wants or the sizes are too small, although she is of medium size. Also, this country is in stagnation due to the red tape etc. put upon us. Labour want to clear the (now £36b) tax gap by making people pay £5b from whatever method they think they can use. One method is to increase and train staff at HMRC to detect this tax gap. perhaps HMRC should be trained to answer the phone and reply to e-mails and post.

Thanks (5)
avatar
By SuperAccountingSteve
15th Apr 2024 13:08

I read that right , a £58 million black hole? Thats some error.

Thanks (0)
Replying to SuperAccountingSteve:
avatar
By johnjenkins
15th Apr 2024 13:39

I think Oppenheimer might have been their Accountant.

Thanks (0)