Ted Baker’s largest lender, Secure Trust Bank, has fallen out with its administrators over an alleged conflict of interest, according to reports from The Times.
The bank attempted to replace Teneo as it is owned by the same private equity firm that owns a stake in Ted Baker owner Authentic Brands.
It is understood that Secure Trust was concerned that Teneo may have motivation to work in the best interests of its owner CVC and not creditors.
Despite Secure’s attempts a judge has decided that Teneo must remain as administrator.
Sources close to CVC told The Times that there was no conflict of interest and all its portfolio companies were run by different teams
Documents filed by Teneo this week show that Ted Baker owes nearly £60m to 612 unsecured creditors that are unlikely to be repaid.
Administrators stated that the £15.6m owed to Secure Trust is expected to be paid.
Teneo was appointed as administrator in March after Authentic Brands Group struggled to improve its fortunes after acquiring Ted Baker in 2022 in a £210m deal.
The administrators have closed 11 UK stores resulting in the loss of around 120 jobs.
The European arm of the business is also on the brink of collapse which has put 149 jobs at risk.
