Authentic remains “committed” to Ted Baker despite North American closures

Despite Ted BakerNorth American operating partners, following its European counterparts in administration, Authentic Brands Group recommits to seeking a new UK operating partner.

According to an Authentic spokesman, the company is looking for a new partner to run the business, and its UK-based design office, UK website and wholesaler remain operational.

“We are close to finalizing agreements with new partners who will operate Ted Baker concessions, wholesale distribution and e-commerce,” an Authentic spokesperson told WWD.

“We remain committed to Ted Baker and are optimistic about the future of the brand.”

Late last month, the Ted Baker Group, together with OSL Fashion Services, a Canadian company specializing in retail operations, distribution and digital marketing, filed a court-supervised restructuring proceeding and hired Alvarez & Marsal Canada to monitor the business and its financial affairs.

At the same time, the Ted Baker Group filed a Chapter 15 petition in the U.S. Bankruptcy Court in New York. This designation constitutes an application for recognition of Canadian proceedings. Since then, almost its entire fleet of employees – 350 in the U.S. and 280 in Canada – have been laid off.

Ted Baker operates 34 stores in the US and 9 in Canada. The liquidation sale began last week and will include goods, fixtures, furniture and store and warehouse equipment. The online store was also closed on May 10.

OSL also licenses two other Authentic-owned brands, Lucky Brand and Brooks Brothers, in Canada and those stores are also being liquidated.

In court documents, the Ted Baker Group said the bankruptcy filing was necessary due to “liquidity constraints caused in part by negative cash flow and working capital issues, as well as the threat of immediate termination of key licensing agreements with ABG…” and) to provide a moment respite necessary to stabilize and maintain the Ted Baker Group’s operations while considering alternative restructuring solutions.”

The news comes a month after Ted Baker’s UK distributor, No Ordinary Designer Label, placed the companies into administration. In March, the company was forced to call in Teneo’s administrators after the company’s contract with AARC was terminatedwhich managed the British-founded brand’s retail stores and e-commerce platform in the UK and Europe.

Since that time The Frasers Group has become a leader in the British market in taking over a failing business. Earlier this month, it was reported that Frasers was close to a deal to take over Ted Baker’s UK operations. The next one is also behind the scenes, fighting for the takeover.