Ted Baker Announces Closure of 15 UK Stores, Resulting in 245 Job Losses

Ted Baker Announces Closure of 15 UK Stores, Resulting in 245 Job Losses

London (Parliament News) – Ted Baker is closing 15 UK stores, resulting in 245 job losses, as it faces administration challenges and seeks new operating partners.

The high street fashion brand Ted Baker is to shut 15 stores across the UK with the loss of 245 jobs after collapsing into administration.

Is Ted Baker Facing Administration Challenges

The business’s European retail and online arm designated Teneo as administrator last month after the retailer, which has 46 shops in the UK and Europe, laboured with tough trading requirements and the fallout from the 2019 ousting of its creator, Ray Kelvin, after declarations of a culture of “forced hugs” at the group. Ted Baker was then struck by the emergence of an accounting error and a string of profit cautions.

Why is Ted Baker Closing UK Stores?

According to Guardian, on Monday Teneo stated 11 loss-making Ted Baker stores will close by 19 April with the loss of 120 jobs. These include platforms in Birmingham’s Bullring shopping centre and in Liverpool, Oxford, Leeds, Bristol, Milton Keynes and Nottingham. Teneo stated that there was no possibility of returning the shops to profitability even with substantial rent reductions. A further 25 positions will also go to head office to reduce costs.

What Prompted Ted Baker’s Store Closure Decision?

Four more shops will shut in the coming weeks with the loss of about 100 jobs after owners served notice on the venues in Manchester, Bicester and two in central London. Authentic Brands, the proprietor of the intellectual property of Ted Baker, is still persisting in seeking a new operating associate for the retail and online company in the UK and Europe, Teneo has said.

Teneo’s Benji Dymant, the joint administrator of No Ordinary Designer Label, which is the retailer of the Ted Baker brand in the UK and Europe, stated that the store closures were “regrettable”.

Will Ted Baker Find New Operating Partners?

He counted in a statement that the decision “will enhance the performance of the business, as Authentic continues to advance discussions with the potential UK and European working partners for the Ted Baker brand to fetch the business back to health”.

Are UK High Street Woes Impacting Ted Baker?

The closures are an additional blow to the UK high street, which has been struck by a number of prominent retailers calling in administrators since the beginning of the year as consumers cut spending amid a wider economic downturn. The Body Shop closed a number of stores and cleared 300 head office jobs after administrators FRP were assigned to the UK arm of the retailer in February. The luxury apparel retailer Matchesfashion cut 273 jobs – more than half its crew– after its new owner, Mike Ashley’s Frasers Group, called in officeholders last month.

Ted Baker’s decision to close 15 UK stores, resulting in 245 job losses, reflects the challenges it faces amidst administration and seeks new operating partners. The closures underscore broader struggles on the UK high street amid the economic downturn, highlighting the need for adaptive strategies in the retail sector.

Federica Calabrò

Federica Calabrò is a journalist at Parliament News, She is covering Business and General World News. She is a native of Naples, commenced her career as a teller at Poste Italiane before following her passion for dance. Graduating in classical dance, she showcased her talents with two entertainment companies, enchanting audiences throughout Italy. Presently, Federica serves as the general secretary at the Allianz Bank Financial Advisors financial promotion center in Naples. In this capacity, she manages office forms, provides document assistance for Financial Advisors, oversees paperwork for the back office, and ensures smooth customer reception and assistance at the front office. Outside her professional obligations, Federica indulges in her passion for writing in her leisure time.