Ted Baker is on the brink of collapse this morning as its American owner prepares to place it into administration, putting hundreds of jobs at risk.
The fashion brand - one of the most iconic names on the British high street - has built up “a significant level of arrears”, according to Authentic Brands Group, which acquired the chain for £211million less than two years ago.
The business, which began life as a menswear brand in Glasgow in 1988, will continue to trade and customer orders will be fulfilled, the US group said.
Ted Baker has about 975 employees and runs 46 stores, plus an e-commerce platform and department store concessions.
Authentic is in "advanced discussions" with several potential buyers for the Ted Baker brand, it added.
Authentic Brands Group chief strategy and transition officer John McNamara said Ted Baker's holding company in the UK and Europe - No Ordinary Designer Label (NODL) - had "built up a significant level of arrears" during a tie-up with Dutch firm AARC and the damage done "was too much to overcome".
“We wish that there could have been a better outcome for the Ted Baker employees and stakeholders," he said.
“It is hopefully some consolation for customers that NODL will continue to trade online and in stores.
“We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began.”
Authentic did not give any indication of job loss numbers in a statement.
FTSE 100
The UK's flagship share index, the FTSE 100, was down three-points at 7,734 shortly after opening this morning.
Brent crude oil futures was down 0.48% today, trading at $86.96 a barrel.
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