Global Data apparel analyst Neil Saunders told Just Style that it makes sense that OSL is a potential buyer of the brand’s European operations as it has been running Ted Baker’s American operations via a licencing agreement.
The revelation, originally reported by Sky News, follows closely on the heels of Ted Baker’s plunge into administration and just days after Teneo Financial Advisory Limited’s announcement confirmed the permanent closure of 11 Ted Baker stores across the UK, resulting in the loss of over 145 jobs, after concluding the sites “had no prospect of being returned to profitability”.
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Saunders believes Ted Baker would gain operational expertise from OSL, who he described as a “disciplined operator” that holds “sound commerce solutions” which could be leveraged if it runs Ted Baker’s European operations.
However, Saunders added: “OSL is more operationally focused rather than being an expert in managing and developing brands.
“This would be an issue if it were not for the fact that Authentic Brands owns the Ted Baker brand. Authentic brings the brand expertise and OSL can complement this with its operational prowess, so this arrangement works.”
Saunders was keen to add that OSL is a very “North American focused” company and said there are questions about its expertise in European retail.
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By GlobalDataThe Times newspaper also reported that British companies Next and Frasers Group have been in contact with Teneo about taking on Ted Baker’s European brand.
Saunders thinks Next would be a “good fit” for Ted Baker as the brand could benefit from the retailer’s very strong distribution network.
Despite this, he explains that Next’s ownership could “dilute” the brand ethos however given the company’s struggles it might be a “price worth paying”.
“Frasers is also interested, although while there is a good fit in terms of the proposition its record of buying and operating brands has been a bit patchy of late,” said Saunders.
Teneo has refrained from commenting on the speculations whilst OSL, Next and Frasers Group had not responded to Just Style’s request for comment at the time of going to press.
GlobalData apparel analyst Louise Deglise-Favre previously told Just Style that the news of the administration was “to be expected” given Ted Baker’s financial situation.
She added: “It would not be surprising to see more store closures in the future, even if the brand gets bought, as a potential new owner will likely prioritise reviving the brand’s identity over getting tied up in costly stores.”
The news of the administration process came shortly after the dissolution of a licensing partnership between Ted Baker and Dutch company AARC.
At the time, ABG’s chief strategy and transition officer John McNamara said the group was focused on securing a new partner to “uphold and grow the Ted Baker brand in the UK and Europe where it began”.
