Ted Baker Looks To Sell Business After Turning Down Interest From Sycamore
British fashion retailer Ted Baker is open to selling itself after receiving significant takeover interest.
The company has launched a formal sales process after turning down a $333 million acquisition bid by private equity firm Sycamore, which sent its share surging by 11% to 142.6 pence.
“The Board has decided to conduct an orderly process to establish whether there is a bidder prepared to offer a value that the Board considers attractive relative to the standalone prospects of Ted Baker as a listed company,” the company said in a statement.
The company currently runs 560 stores and concessions and is in the middle of a three-year turnaround plan under the direction of chief executive Rachel Osborne. Ted Baker has seen demand return from pandemic lows, with sales growing by 35% in the fourth quarter ending 29 January 2022. The company maintains a strong balance sheet, with a net cash position at year end and ample liquidity headroom to continue to grow in the future.
The company has already received regulatory approval to purse the sale of its business and continue talks with potential buyers on a confidential basis.
Ted Baker’s move to sell its business comes at a time when British firms are being snapped up by overseas investors as they continue to deal with low valuations and uncertainties in the market that have come as a result of Britain’s exit from the European Union and the ongoing pandemic.
Originally published at https://retailbum.com on April 5, 2022.
