A second activist investor has a small stake in fashion retailer Ted Baker which has just rejected a £254 million takeover approach.

Hong Kong investment firm Oasis Management Company now has a 2.47% holding in the high street chain which turned down a second approach from Sycamore Partners, a New York private equity firm, at 137.5p a share.

It said the offer significantly undervalued the upside of the brand’s turnaround. Sycamore made an initial offer at 130p per share on 18 March.

Shares in the company closed barely unchanged yesterday at 128.25p after rising by almost a third in the past month on the back Sycamore’s interest. However, they have not recovered from the crash in 2019 following the resignation of Ray Kelvin who founded the company in Glasgow in 1988 but was forced to stand down over “hugging” allegations which he denied.

Chief executive Rachel Osborne has been attempting to turn around the company which remains without a chairman following the death of John Barton.

It reported a 35% rise in sales over the 12 weeks to 29 January.