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American private equity firm Sycamore Partners is reportedly considering a takeover bid for Ted Baker, according to Sky News.
The outlet reports that Sycamore has appointed advisers Numis to help it evaluate a potential offer, with one source cited claiming it was considering approaching the board of the british fashion retailer with an offer – although it is believed it has yet to do so.
Reports also suggest that the private equity firm could yet still walk away without making an offer.
Last month, the retailer revealed its group sales increased 35% year-on-year in the 12-week period from 7 November 2021 to 29 January 2022 (Q4), and up from 18% reported in Q3, despite Omicron headwinds.
Compared to pre-pandemic levels for the period, retail sales were running at -10% before Omicron warnings, falling to below 42% during the Omicron surge. However, the group said it successfully navigated the global supply chain disruptions with some “modest” impact on product availability.
Additionally, Ted Baker’s net cash at the year end is positive £3m, in line with its previously upgraded guidance, and its trading margin improved over 350 bps across all channels.
At the time of writing Ted Baker shares have opened 17% higher than Thursday’s (17 March) close.
