Retail giant Frasers Group, owned by businessperson Mike Ashley, is reportedly close to acquiring the struggling British operations of fashion brand Ted Baker.
The move comes just weeks after Ted Baker's existing UK licensing partner, No Ordinary Designer Label (NODL), entered administration.
Sky News sources claim Frasers Group has emerged as the preferred bidder for Ted Baker's UK business.
An agreement between Frasers and NODL's administrators is expected in the coming days.
The acquisition would add Ted Baker to Frasers Group's already extensive portfolio of retail brands, including Evans Cycles, Gieves & Hawkes, House of Fraser, Jack Wills, and Sports Direct.
While other companies such as Next and Ted Baker's US partner OSL reportedly expressed interest, Frasers appears to be the frontrunner.
However, Ted Baker's UK operations have shrunk recently.
NODL's administration led to the closure of 15 stores and the loss of more than 200 jobs last month. Despite this, dozens of Ted Baker stores remain operational in the UK.
Furthermore, in March this year, the European retail and online division of Ted Baker was reportedly on the brink of administration, placing nearly 1,000 jobs at risk.
The new ownership structure wouldn't affect Ted Baker's parent company, Authentic Brands Group (ABG).
ABG would continue to hold ownership, but Frasers Group would manage the company's UK operations if the deal were finalised.
ABG acquired the British high-street fashion retailer for approximately £211m ($263.21m) in 2022.
This potential acquisition comes amidst a period of significant upheaval for Ted Baker.
The company was delisted from the London Stock Exchange, UK, in 2022 after being acquired by ABG. This followed a series of challenges that began in 2019 with the departure of founder Ray Kelvin due to allegations of misconduct.
Subsequent years saw profit warnings, accounting issues, and the additional strain of the Covid-19 pandemic.
In an attempt to address these issues, Ted Baker cut jobs and raised capital in 2020.
Frasers Group's potential acquisition of Ted Baker's UK operations signifies a significant development for both companies.
If finalised, the deal would bolster Frasers Group's brand portfolio while potentially offering Ted Baker a path to revitalise its UK presence.
