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Ted Baker’s preferred bidder backs out of deal

Authentic Brands, the US-based firm that owns Reebok, was the preferred buyer

The proposed sale of Ted Baker has been thrown into doubt after it confirmed the board’s preferred bidder has backed away from a deal. 

The company, which has not named its bidder, was “informed by the preferred counterparty last night that it did not intend to proceed with an offer for the company”. 

Ted Baker stated that the decision “was not linked to its due diligence review” of the business.

It has been reported that the preferred bidder was Authentic Brands Group (ABG), the US-based firm founded by billionaire Jamie Salter that runs Reebok and Forever 21, was the preferred buyer. Sky News reported that a  £300m ($379.35m) deal had been in discussion. 

Ted Baker said it will now assess “a number” of other proposals it has received from prospective buyers and “determine whether to proceed with any of those proposals”.

Last month, Ted Baker revealed it had seen its losses narrow to £44.1m for the 52 weeks ended 29 January 2022, up from a loss of £107.7m the previous year.

The improved performance comes as group revenues increased 20% to £428.2m, up from £355.3m, as the retailer said sales were “supported by a steady return to the office and social events”.

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