A new report has revealed the financial state of Ted Baker before it officially collapsed in 2024, showing the Glasgow-founded designer brand owed over £100 million in debt.
Massive Debt and Creditor Losses
The fashion firm plunged into administration with more than £100 million worth of debt, according to documents from administrators Teneo Financial Advisory. Investors and 689 creditors face losing more than £70 million. The company books showed a debt of over £100 million, with an additional £16.4 million owed to Secured Trust Bank (STB), which has since been repaid in full.
Ted Baker Holdings Limited (TBLH), controlled by former owners, was owed around £27.3 million, though some was repaid including a debt assignment of £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 among creditors owed money: estate agent Savills is owed £42,000, while Glasgow-based MJ Mapp Limited is owed £132,000.
Administrators noted a residual shortfall of £21.9 million and do not anticipate further distributions to TBLH. A total dividend of £693,978 (1.25p in the pound) was declared to unsecured creditors as the first and final dividend.
Collapse Triggered by Failed Deal
Ted Baker was founded in Glasgow in 1988 and once operated over 500 stores worldwide. It initially specialized in shirts but expanded into a full range of clothing. After struggling financially, it collapsed in 2024 following a sour deal between Authentic Brands Group (ABG), owner of No Ordinary Designer Label, and Dutch operating partner AARC. ABG appointed Teneo as administrators, closing all remaining stores in 2024, including five in Scotland, and resulting in over 900 job losses.
Administrators said trading suffered significant deterioration and expected equity funding did not materialise, leading to £50 million in supplier arrears. The winding-up process is expected to be completed by the end of March 2027.
Return to High Street
Despite the collapse, Ted Baker is making a small comeback with a 'shop-in-shop' experience in Selfridges at Manchester's Trafford Centre.
