No Ordinary Designer Label (Ted Baker) - Case Update

Administrators Teneo have released their long-awaited proposals in the administration of No Ordinary Designer Label (operating as Ted Baker), but have remained tight-lipped on a potential rescue deal by Frasers Group which is reportedly close to being finalised.

The company, a popular fashion retailer for men and women which trades under the Ted Baker brand through a licence agreement with owner Authentic Brands Group, entered administration in March. The company cited a poor trading period and arrears accumulated following its acquisition by Dutch company AARC Group. At the time of the administration, the company employed approximately 1,000 people across its head office in London, its UK stores and branch operations / subsidiaries across Europe and Hong Kong.

Following their appointment as joint administrators, Benjamin Dymant and Daniel Smith of Teneo concluded it would be in the best interests of creditors to continue to trade the company’s business whilst seeking a sale to a new operating partner. Any sale of the assets would require Authentic Brands, as the owner of the Ted Baker brand, to agree a new licence agreement with that party. All employees were initially retained, but have since faced three rounds of redundancies.

Although not outlined in the joint administrators’ proposals, it has been reported that Frasers Group is closing in on a deal to take over the company’s British operations. The deal is not believed to include head office staff, with just under 100 staff thought to be remaining.

The joint administrators anticipate that first ranking secured creditor Secure Trust, owed £15.6 million, will be repaid in full, while unsecured creditors, owed nearly £60 million, are not expected to receive a distribution.

The joint administrators have been assisted by Osborne Clarke, Gateley, DWF Law, Shoosmiths, Simmons & Simmons and CBRE. Their proposals can be found HERE.