Ted Baker’s favorite bidder leaves, shares fall

People walk past a Ted Baker store on Floral Street, in London, Britain April 3, 2022. Picture taken April 3, 2022. REUTERS/Peter Nicholls/File Photo

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June 7 (Reuters) – Ted Baker (TED.L) said on Tuesday that his favorite suitor would not make a takeover bid for the British fashion chain and that the company would now assess other proposals received under the formal sale process, sending its shares plummeting nearly 19%.

The London-listed group went up for sale in April and said in late May that it had chosen a preferred bidder to drive the process forward after a flurry of revised proposals and rejection of overtures from private equity group Sycamore. Read more

Ted Baker, who signed up in 1997 as ‘No Ordinary Designer Label’, did not disclose the preferred bidder but said the party had indicated their reason for not following up on a bid n was unrelated to its due diligence review.

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A report from last month said the bidder was Juicy Couture and Forever 21 owner Authentic Brands and was prepared to offer over 150 pence per Ted Baker share.

The US-based group was not available for comment outside office hours. [nL4N2XM1BD]

Shares of Ted Baker were down 18.9% at 111 pence at 07:08 GMT in early trading. At their peak in 2015, the shares traded at 2,972 pence each.

Known for its suits, shirts and dresses, Ted Baker is in the midst of a recovery plan and in May reported robust sales in the months ahead as demand for office and leisurewear rebounds. Read more

The company’s market value has plummeted in recent years after former CEO Ray Kelvin left in 2019 amid misconduct allegations, and after the group revealed an accounting scandal in 2020.

Kelvin has denied the allegations and still owns nearly 12% of the company he founded in 1988 in Glasgow, Scotland as a one-store shirt specialist.

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Reporting by Pushkala Aripaka in Bengaluru; Editing by Shailesh Kuber and Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.

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