Glasgow-founded fashion label Ted Baker collapsed in 2024 with debts exceeding £100 million, according to a new report. The revelation comes shortly after the brand announced a small-scale return to the high street.
Financial collapse of a Scottish icon
Founded in Glasgow in 1988, Ted Baker once operated more than 500 stores worldwide under the No Ordinary Designer label. Initially a shirt specialist, it expanded into a full lifestyle brand. However, after years of financial struggle, the company officially collapsed following a failed deal between Authentic Brands Group (ABG), the owner, and Dutch operating partner AARC.
ABG appointed Teneo Financial Advisory as administrators in 2024, leading to the closure of all remaining stores, including five in Scotland, and the loss of over 900 jobs.
Details of the debt
New documents reveal that investors and 689 creditors face losing more than £70 million. The company's books show a debt of over £100 million, with an additional £16.4 million owed to Secured Trust Bank (STB). Administrators confirmed that STB has been fully repaid.
Ted Baker Holdings Limited (TBLH), controlled by former owners, was owed around £27.3 million, though some was repaid via a debt assignment worth £4.9 million and an earlier distribution of £504,000. Unsecured creditors were owed approximately £57 million, with Teneo receiving 689 claims totaling £50.3 million.
Scottish firms affected
Two Scottish-based firms are on the creditor list: estate agent Savills is owed £42,000, and MJ Mapp Limited in Glasgow is owed £132,000. Administrators noted a residual shortfall of £21.9 million, with no further distributions expected to TBLH.
A total dividend of £693,978 (1.25p per pound) was declared to unsecured creditors, described as the first and final prescribed part dividend.
Cause of collapse
Ted Baker's collapse was triggered in 2024 after ABG, which bought the brand in 2022, licensed AARC to operate Ted Baker in 2023. However, trading suffered significant deterioration, and expected equity funding did not materialize, leading to £50 million in supplier arrears.
The winding-up process is expected to be completed by the end of March 2027. Administrators stated they do not anticipate needing to extend the administration period.
Despite the collapse, Ted Baker has returned with a 'shop-in-shop' experience inside Selfridges in Manchester's Trafford Centre, signaling a potential revival.
