Authentic Brands, the holding company of Ted Baker, steps in with financial assistance for AARC, the firm managing Ted Baker’s UK and European operations, as it grapples with funding challenges.
The Times report discloses that AARC, headquartered in the Netherlands and overseeing Ted Baker’s stores and online presence in the UK and Europe, secures a short-term loan. Collaborating with financial advisors from FTI Consulting, AARC explores avenues for securing long-term financing.
Authentic Brands acquired Ted Baker for £211 million last year, subsequently adopting a global outsourcing strategy through licensing arrangements with various companies.
AARC assumed the role of licensee in April, a decision made amidst a challenging period for the fashion industry, compounded by the cost-of-living crisis and unfavorable weather patterns affecting seasonal product launches.
The early summer saw unseasonably cool weather in key markets, while a late heatwave coincided with the arrival of autumn collections. Recent days in the UK have witnessed a transition toward a more autumnal climate.
Reports suggest that fashion sales in September and early October have been lackluster, hinting at broader cash flow challenges faced by companies, possibly including Ted Baker’s licensee.
The report also alludes to «City sources» suggesting that AARC may explore financing options with lenders imposing high-interest rates.
Official statements on the matter have not been provided by any involved parties.
