Ted Baker chooses anonymous potential buyer as Sycamore pulls away

Ted Baker picks off an anonymous potential buyer as Sycamore private equity drops plans to take over the fashion business

  • Ted Baker said he selected a ‘preferred counterparty’ for the sale process
  • Company moves to ‘confirmational due diligence’ which may take ‘several weeks’
  • Sycamore walked away after being pushed away three times by Ted Baker

Ted Baker chose an anonymous potential buyer for his business after private equity firm Sycamore dropped plans to acquire the retailer.

The British fashion brand said it will now move into a “confirmational due diligence” process with its “preferred counterpart” which could take up to “several weeks”.

Ted Baker has received a slew of revised proposals from interested parties since he officially went on sale in April.

Ted Baker picked out a potential buyer but said there was no certainty an offer would be made

New York-based private equity firm Sycamore had expressed interest in buying Ted Baker last month, raising its offers several times before the sale process was officially launched, but has now pulled out.

The company had offered £1.30 and £1.375 a share and made another offer at an undisclosed price, but Ted Baker chief executive Rachel Osborne argued a U-turn would value it significantly more than those offers.

Ted Baker said there was no certainty an offer would be made, adding that further announcements would be made “as appropriate”.

“The Ted Baker Board of Directors reserves the right to modify or terminate the process at any time and, in such cases, will make an appropriate announcement,” he added.

Ted Baker shares rose 1.3% to 141p in morning trade on Monday. The stock is up 35% so far this year on redemption interest.

Last month, Sky News reported that Reebok owner Authentic Brands Group was considering a bid.

The US brand licensing group, led by billionaire Jamie Salter, has caused ripples this year with an investment in David Beckham’s brand.

ABG failed in its bid to partner with JD Sports to buy Topshop last year.

It has been reported that a top 20 investor said he would only accept an offer over £1.70, or £310m.

The Mail on Sunday also reported last month that another major shareholder seemed happier to take the cash and rush in.

Sources told the MoS that £1.50 would be enough to get a thumbs up.

Ted Baker, which has nearly 400 stores mostly in Europe, the US and the UK, has been mired in scandals and devastated by Covid, issuing a series of profit warnings.

It began a turnaround in 2020 and boosted its womenswear and reduced the number of discounted items.


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