Ted Baker Draws Takeover Interest From US Private Equity Firm

Retail private equity firm, Sycamore Partners, is in the early stages of making a cash offer for British fashion retailer Ted Baker, the company said Friday.

The New York-based firm’s effort to acquire Ted Baker comes at a time when CEO Rachel Osborne is in the middle of shepherding a three-year turnaround plan and rebuilding the company’s online business.

Ted Baker, which currently operates 400 store locations in Europe, North America and the United Kingdom, said last month that it was cautiously optimistic about its 2022 financial outlook as consumers slowly make a return to their offices, Reuters reported.

The company’s stock went up by 20% on Friday but was still just above a pound per unit. That is still significantly lower than its position in 2015 when its stock price was nearly 30 pounds per unit. The company’s current valuation is approximately $289.26 million.

Sycamore’s interest in acquiring Ted Baker follows similar efforts by other U.S. firms looking to scoop up British companies in the U.S. market, which range from supermarkets to defense groups, as the economic impacts of the pandemic and Brexit have reportedly reduced their valuation.

The private equity firm, which specializes in dealing with struggling retail businesses, noted that there is no certainty that an offer will be made. It also did not disclose the terms of the deal.

Ted Baker Sees Q2 Sales Surge As Dressing Up Becomes Fashionable Again

Originally published at https://retailbum.com on March 18, 2022.