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Ted Baker PLC on Tuesday said it was informed by its preferred bidder late Monday that it does not intend to proceed with an offer for the fashion retailer.
The bidder, whom Ted Baker hasn't named, indicated that its reason for not proceeding was not linked to its due diligence review of the company, Ted Baker explained.
The London-based seller of clothing and accessories said it will now go back and look at other proposals received as part of its formal sale process, but there can be no certainty that an offer will be made.
‘The board of Ted Baker reserves the right to alter or terminate the process at any time and in such cases will make an announcement as appropriate,’ it said. ‘The board of Ted Baker also reserves the right to reject any approach or terminate discussions with any interested party at any time.’
Ted Baker kicked off a formal sales process in April. At the time, it had said that Sycamore Partners Management LP, the New York-based private equity firm whose approaches had triggered the sales process, was participating. However, Ted Baker later confirmed that Sycamore was no longer participating in the sales process.
Late last month, Ted Baker said it had narrowed its pretax loss to £44.1 million in the financial year that ended January 29 from £107.7 million the previous year. Revenue climbed 21% to £428.2 million from £355.3 million. Total brand sales increased to £918 million from £745 million the previous year, with an improved performance seen across all its channels and markets.
Ted Baker has suffered setbacks in recent years that have sent its shares tumbling and resulted in management changes. It was hit by complaints of inappropriate hugging made against then-chief executive Ray Kelvin in 2019. It then went through three CEOs within a year, as well as several profit warnings.
The company has 375 stores and concessions around the world, spread almost equally across the UK, Europe, North America, and Middle East, Africa and Asia regions, with a few in Australia as well.
Ted Baker shares were down 21% early Tuesday at 108.50 pence, amid a wider flat market. The stock is down 38% over the past 12 months. It has a market capitalization of just over £200 million.
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