Authentic Brands Group Seeks New Partner As Liquidation Proceeds
Authentic Brands Group says it remains committed to Ted Baker, despite the liquidation of the brand’s North American operating partners, following a similar move in Europe. The company is looking for a new partner to run the business, while its U.K.-based design office, website, and wholesale operations continue to function. PDS Group has been appointed as the designer and supplier of Ted Baker’s core categories globally, also servicing wholesale accounts in the U.K. and Europe.
Authentic, the brand management firm, acquired Ted Baker at the end of 2022 for approximately 211 million pounds. In late April, the Ted Baker Group, which includes Ted Baker Canada and Ted Baker Inc., along with Ontario-based OSL Fashion Services Canada and OSL Fashion Services Inc., filed for court-supervised restructuring. Alvarez & Marsal Canada was appointed as the monitor of the business and financial affairs.
Simultaneously, the Ted Baker Group filed Chapter 15 in the U.S. Bankruptcy Court for the Southern District of New York, a motion recognizing the Canadian proceedings. Since then, nearly all staff—350 in the U.S. and 280 in Canada—have been terminated, with remaining employees working to wind down the business.
Ted Baker operates 34 stores in the U.S. and nine in Canada. Liquidation sales began last week, involving merchandise, fixtures, furniture, and equipment at the stores and warehouses. The e-commerce site was shuttered on May 10.
OSL, which also holds the license for Authentic-owned brands Lucky Brand and Brooks Brothers in Canada, is liquidating those stores as well. The sales are being conducted by Gordon Brothers.
In court documents, Ted Baker Group stated that the bankruptcy filings were due to “liquidity constraints caused in part by negative cash flows and working capital issues as well as the threat of the immediate termination of their key license agreements with ABG… [and to] provide the breathing room necessary to stabilize and maintain the Ted Baker Group’s business while considering their restructuring alternatives.”
The North American bankruptcies follow Authentic’s decision to place Ted Baker’s U.K. and European retail and e-commerce businesses into administration about a month ago. This move came after a failed partnership with AARC, which was supposed to operate Ted Baker’s 120-plus retail stores, concessions, and online business. Authentic claims that AARC failed to meet its financial obligations, leading to its removal as a shareholder in the Ted Baker business.