Ted Baker seller in the red as jobs cut and stores closed amid focus switch to Suit Direct
A group which sells Ted Baker clothes across the UK slumped into the red as it significantly restructured itself to focus on its Suit Direct brand.
As part of the move, Baird Group disposed of its license to sell Ben Sherman clothes, closed unprofitable stores, cut more than 100 jobs and appointed a new chief executive.
As a result of the changes, the Leeds-headquartered group has posted a turnover of £49.3m for the 11 months to the end of 2023, compared to the £82.5m it reported for the year to 28 January 2023.
Newly-filed accounts with Companies House have also revealed that the group went from making a pre-tax profit of £358,000 to a loss of £9m.
It also cut its headcount from 565 to 434 during the financial period.
The company’s turnover from its retail stores was cut from £36.9m to £23.6m while its online sales fell from £11.7m to £9.4m. Its wholesale turnover was slashed from £33.9m to £16.2m.
Its UK turnover decreased from £75.2m to £48.6m, from £5.6m to £652,000 in the rest of Europe and from £1.5m to £58,000 in the rest of the world.
In October, Mark Cotter resigned as chief executive and was replaced by Koran Gul two months later.
Baird Group has held a license to design and make Ted Baker formalwear since 2020.
It also sells the likes of Jeff banks, Gibson London, Antique Rogue, Alexandre, Limehaus, Scott & Taylor and Racing Green.
Ben Sherman license sold amid strategic review
A statement signed off by the board said: “The period… saw a transition in strategy and personnel as the company adapted to the challenging trading environment following the pandemic and cost-of-living crisis.
“The year saw consumers continuing to be cautious with spending as inflation remained high in 2023, despite falling during the year.
“In February 2023, the board… undertook a full strategic review to assist with the future direction of the company.
“The outcome of this review was to simplify and focus the business’ activities on its Suit Direct brand trading through stores, online and through wholesale channels.
“To realise this objective, the business sold its Ben Sherman licenses which permitted the company to make and sell Ben Sherman clothing in the UK and some European territories.
“At the same time as this strategic review, the business undertook a full structural review centred around significant streamlining and cost saving activities.
“By September 2023, the business had sold on its Ben Sherman licenses and agreed to exit the European license by 31 December 2023 and achieved 90 per cent of restructuring and cost savings.
“The remaining business, focusing around Suit Direct, benefitted from simplified brand focus for the management team.”
Suit Direct owner ‘still faces challenges’
On its future, the company added: “After a year of transition which has seen changes in senior personnel, the closure of unprofitable stores and the disposal of the Ben Sherman license, the company is now well positioned to drive forward and pursue its new strategic direction, overseen by a new CEO.
“This is epitomised by the opening of the Suit Direct store in Westfield, Stratford. This store is a blueprint for future store openings, alongside the upgrading of current real estate, a project which is already well underway.
“A comprehensive product strategy review has led to a more refined product range with deeper stock levels, ensuring consistent and reliable availability.
“Pricing our garments correctly from the start builds customer confidence, reduces the need for extensive sales and enhances margins.”
It also said: “The company still faces challenges in the market, as evidenced… regarding the uncertain future of the Ted Baker brand.
“The business will continue to manage costs effectively and monitor micro- and macro-economic trends.
“Despite the challenging trading environment, the business is well placed to maximise efficiencies and maintain growth.”
Ted Baker closes remaining UK stores
It was announced earlier this month that the remaining 31 Ted Baker stores in the UK and Republic of Ireland were to close in a move that put more than 500 jobs at risk.
The decision came after the company behind Ted Baker’s UK shops, No Ordinary Designer Label, fell into administration in March this year.
The final round of closures followed 15 being shuttered in April and the loss of 245 jobs.
Before it collapsed into administration, Ted Baker employed just under 1,000 people in the UK and operated almost 50 stores.
US-headquartered Authentic Brands Group owns the intellectual property to Ted Baker, while No Ordinary Designer Label was the holding company for the brand in the UK.