Frasers Group and Next, two major UK-based retailers known for acquiring distressed brands, are reportedly in talks to buy parts of Ted Baker's European operations from administrators at Teneo Advisory.
Ted Baker, once a powerhouse in the fashion industry, has faced numerous challenges leading to the administration of its European operations under No Ordinary Designer Label (NODL). Enter Frasers Group and Next, companies with a knack for turning around struggling fashion labels. Frasers Group, known for acquiring brands like Jack Wills, and Next, which manages partnerships with Gap and Victoria’s Secret, are now eyeing Ted Baker’s assets.
Both Frasers and Next have strategic reasons to consider Ted Baker. Next already manages Ted Baker’s kidswear, nightwear, and lingerie through licensing agreements, which could make integration smoother. Frasers, with its portfolio of both thriving and turned-around brands, sees an opportunity to extend its market reach and revitalize Ted Baker’s unique offerings.
The road ahead isn’t without its bumps. Authentic Brands Group, the ultimate owner of Ted Baker, cited “insurmountable challenges” following a failed partnership. Yet, the potential for resurgence under new ownership could reposition Ted Baker as a leading brand in the rapidly evolving retail landscape, leveraging its established reputation with fresh strategic direction.
The market's response to this potential acquisition has been cautiously optimistic. Investors are watching closely, as the successful revival of Ted Baker could signal new profitability avenues in the distressed assets sector, particularly in fashion retail.
Will Frasers and Next rejuvenate Ted Baker?
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