As 15 stores set to close, how the mid-market brand once ruled the 90s high street but became derailed by founder Ray Kelvin ‘hugging culture’ rumours


By Bridie Pearson-jones and Arthur Parashar and Jo Tweedy For Mailonline

20:05 08 Apr 2024, updated 20:09 08 Apr 2024



Ted Baker has this week become the latest British brand to feel the sucker punch of changing shopping habits, with the company set to shut 15 stores across the UK and cut around 245 jobs after plunging into administration.

The company behind the fashion brand’s UK shops hired administrators from Teneo last month. 

The retail giant currently has 86 locations in the UK, which include 29 standalone branches and 35 concessions. Twenty-five shops are located in John Lewis department stores, while seven are in airport stores and eight are in Ted Baker outlet stores.

Ted Baker – which first opened in Glasgow in 1988 – has picked up impressive celebrity endorsements over the years including Holly Willoughby, Amal Clooney, Amanda Holden, Emma Stone and Myleene Klass.

At the height of its fashion powers in the nineties, the brand, founded in 1988 by Ray Kelvin – who famously quit in 2019 after being accused of enforcing a ‘hugging’ culture at the company, had firmly mastered the art of upmarket mainstream. 

With its mid-market style, the British brand enjoyed huge success in the 90s and noughties – particularly in the womenswear market
Founder and then-CEO of Ted Baker, Ray Kelvin attends Ted Baker Wooster VIP Event on September 22, 2016 in New York City. In March 2019, Ted Baker business parted ways with Mr Kelvin after allegations of harassment made by young female colleagues
The then Duchess of Cambridge was regularly spotted in a Ted Baker navy trench, wearing it during the couple’s royal tour of Canada in 2011
Eleven shops will be closed by April 19 across Birmingham, London, Cambridge and Liverpool

Full list of Ted Baker closures 

  • Birmingham Bullring
  • Bristol
  • Bromley
  • Cambridge
  • Exeter
  • Leeds
  • Liverpool One
  • London Bridge
  • Milton Keynes
  • Nottingham
  • Oxford
  • Bicester (notice served before administration process)
  • Brompton Road, London (notice served before administration process)
  • Floral Street, London (notice served before administration process)
  • Manchester Trafford (notice served before administration process)

Its smart, boutique-style shops, often in pretty Victorian streets rather than huge malls, attracted shoppers who wanted mid-market stylish attire that was a cut above the likes of TopShop, Oasis and River Island. 

An authentic homegrown backstory appealed to shoppers too; North Londoner Kelvin had started working in his uncle’s Enfield menswear shop aged 11 and gone on to found the Ted Baker brand after success with a men’s shirts shop in Glasgow – he conjuring up world domination while on a fishing trip. 

Who is Ted Baker? He doesn’t exist, with one theory suggesting Kelvin didn’t name the brand after himself in case it went bust. But if he did, said Kelvin, he’d be an ‘intrepid aviator, an all-round sportsman and the consort of princesses and Hollywood beauties’. 

The range of shirts in the Glasgow store – in every colour of the rainbow – became a huge hit in the ‘acid house’ era of the 1990s, as clubbers wanted to stand out under the strobe lights. 

More shops quickly followed – in Manchester’s King Street and Nottingham Exchange Arcade –  and as the 90s rolled on, the brand quickly branched out into other departments, eventually selling everything from womenswear, childrenswear, shoes, fragrance and watches to glasses, wedding attire, bedding and lingerie. 

 The womenswear became known for soft florals, and became a go-to for summer dresses, but shoppers could happily pick up a sharp suit for the office too – and a pair of heels for less than £100. 

Dicey: 36 years since it was founded as a Glasgow shirt shop, Ted Baker looks to have hit the retail buffers, with administrators called in this week (Pictured: file photos of models wearing Ted Baker)
After starting out as a menswear shop, Ted Baker exploded in the 90s, with womenswear sales flying thanks to floral dresses and chic work attire (Pictured: a store in Barcelona, Spain)
Founder Ray Kelvin, who was born in London, dreamed the brand up while on a fishing trip and opened his first store in 1988 in Glasgow. However, he stepped away from Ted Baker in 2019, after his conduct in the workplace was questioned by staff, who said he was responsible for a ‘hugging culture’ (Kelvin pictured attending a special screening of The Gentlemen at The Curzon Mayfair in December 2019)

 

It all started with shirts; the brand was originally menswear, with mid-market shoppers loving the boutique style of the Ted Baker brand
With the UK market flying, the brand headed to New York in 1998, and went on to open dozens more stores across the US
The brand has expanded its range over the years to include accessories such as phone cases
There’s also a jewellery range, including watches
Flower power: The brand became known for bold floral prints
Flower power:  Holly Willoughby celebrated her 41st birthday in style wearing a £175 Ted Baker floral mini dress on This Morning in February 2022
Fashionista: Amanda Holden looked effortlessly stylish in an all white Ted Baker ensemble as she departed Heart FM in February last year
And Amal Clooney is also a fan, the human rights lawyer, who’s married to George Clooney, is pictured wearing a light blue Ted Baker dress in 2017

15 Ted Baker stores set to cloe 

In yet another blow to the High Street, administrators have confirmed some sites across England will pull down their shutters within days.

Eleven shops will be closed by April 19 across Birmingham, London, Cambridge and Liverpool – resulting in 120 staff losing their jobs.

About 25 head office roles will be made redundant as a result of plans to reduce central costs at the fashion chain.

A further four stores were earmarked for closure prior to the firm entering administration, it has been revealed, which will result in about 100 additional redundancies.

These four stores will be closed in the coming weeks, according to the administration team at Teneo Financial Advisory.

The following branches are set to close within days: Birmingham Bullring, Bristol, Bromley, Cambridge, Exeter, Leeds, Liverpool One, London Bridge, Milton Keynes, Nottingham, Oxford, Bicester, Brompton Road, London, Floral Street, London and Manchester Trafford.

Benji Dymant, joint administrator, said: ‘Ted Baker is an iconic British brand with strong partners around the world.

‘These store closures, whilst with a regrettable impact on valued team members, will improve the performance of the business, as Authentic continues to progress discussions with potential UK and European operating partners for the Ted Baker brand to bring the business back to health.

‘We would like to thank Ted Baker team members and partners for their ongoing efforts and support at this difficult time.’

This news comes after Ted Baker was delisted from the London stock market after it was bought by ABG for around £210million about a year and a half ago.

ABG said that No Ordinary Designer Label (NODL) had built up a significant level of arrears’.

It also comes weeks after the end of its partnership with Dutch firm AARC, which ran Ted Baker’s shops and online business in Europe.

The arrears were built up as the business faced tough trading last year, and during the partnership with AARC.

Ted Baker walked away from the AARC deal in January after it claimed its partner had failed to meet its promise to inject cash into the business. Authentic Brands said Ted Baker stores and the retailer’s website would continue to trade.

Authentic, which also owns Reebok and Juicy Couture, agreed a £211 million deal to buy Ted Baker off the stock exchange in August 2022. 

The deal was less than had been considered by Authentic earlier in the year when other potential suitors were circling the fashion brand.

By 1998, Ted Baker had opened its first store in the US, with a shop in New York – and carved out a partnership with American department store Nordstrom. There are now 500 stores and concessions globally. 

Across the UK, there are currently still nearly 90 outlets, including Heathrow, Gatwick and Luton airports and in dozens of branches of John Lewis.  

The brand has always employed the power of celebrity too, with early ambassadors including football, rugby and music stars. 

In 2016, Guy Ritchie created a ‘shoppable film’ to promote the 2016 autumn/winter collection – which carried the strapline ‘Spy it. Click it. Buy it’.

In more recent years, Holly Willoughby, Amal Clooney, Amanda Holden, Emma Stone and Myleene Klass have all worn the brand.

The Princess of Wales famously wore a navy Ted Baker trench during the then Duke and Duchess of Cambridge’s Canada tour in July 2011. 

A fast evolving online shopping scene – with brands such as PrettyLittleThing, Boohoo and ASOS suddenly dominating online sales – and a media spotlight on Kelvin’s apparently intimate working practices saw the brand begin to come unstitched around five years ago. 

Kelvin became known for covering his face in photographs; after he quit following a string of harassment allegations in 2019, the brand said it wanted to re-energise – but has struggled with evolving shopping habits
The impact of online-only stores such as Asos and Boohoo have had an impact on high street brands

The entrepreneur, who lives in Hampstead with his second wife Clare and their daughter, Ava, and also has two sons – Ben and Josh – with first wife Georgia Slowe, was accused of harassing employees in the workplace.  

In 2018, Kelvin took a leave of absence when the company was forced to launch an independent investigation into his alleged behaviour following a petition from staff.

He was accused of stroking people’s necks and making sexual innuendos and promptly stepped down in March 2019, saying ‘It is the right thing to step away’.

Kelvin said at the time: ‘Difficult though this decision is given that Ted Baker has been my life and soul for over 30 years, I’ve decided that the right thing to do is to step away from Ted and allow the business to focus on being the outstanding brand it is so it can face 2019 with fresh energy and renewed spirit.’ 

However, by December that year, bosses of the firm quit after profits plunged to less than £10million after its ‘worst ever year of trading’.

The group said at the time that chief executive Lindsay Page – who took over from founder Ray Kelvin after he quit – had been replaced by an interim director.

The firm No Ordinary Designer Label, which is owned by the Authentic Brands Group (ABG) and trades as Ted Baker filed a notice of intention to appoint administrators Teneo Financial Advisory today
Atmosphere at the Ted Baker London SS’19 Launch Event at Elephante on March 20, 2019 in Santa Monica, California – the company opened its first US store in 1998 in New York
Mr Kelvin, pictured with and Sir Michael Parkinson and his wife Mary in 2018, just before he took his leave of absence from the brand

The resignations were announced as Ted scrapped its shareholder dividend payout and said it is now expecting annual pre-tax profits of between £5 million and £10 million after worse-than-expected trading in November and over Black Friday. This compared with pre-tax profits of £50.9 million the previous year.

In 2024, despite the company’s best efforts to renew its spirit and entice shoppers back to its 86 stores, it finds itself facing closure. 

The firm No Ordinary Designer Label, which is owned by the Authentic Brands Group (ABG) and trades as Ted Baker has filed a notice of intention to appoint administrators Teneo Financial Advisory.

NODL has around 975 employees and runs more than 80 shops and concessions in the UK. In its statement Authentic did not reveal any details of cuts to jobs or shop numbers. 

Going into administration is likely to result in closures of stores and could lead to as many as 1,000 job losses.

Reference

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