Ted Baker puts itself up for sale amid bid interest
High street retailer Ted Baker has launched a formal sale process after private equity firm Sycamore Partners improved its takeover proposal and another third party showed interest in bidding for the company.
The company’s shares closed 18.40p (14.35%) higher at 146.3p, up by more than a third since the bid interest first began, though half their value of five years ago.
In a statement it said: “The board has decided to conduct an orderly process to establish whether there is a bidder prepared to offer a value that the Board considers attractive relative to the standalone prospects of Ted Baker as a listed company.”
The company, which has 560 stores and concessions, is in the middle of a three-year turnaround plan under chief executive Rachel Osborne and has seen demand return from pandemic lows.
Last week, it rejected a second proposal from New York-based Sycamore that valued it at £253.8 million, saying it undervalued the group.
Ted Baker said Sycamore had made a third proposal, but did not disclose the terms in its announcement.
The board has spent years working to regain investors’ trust after former CEO and founder Ray Kelvin left in 2019 following misconduct allegations, which he denied.
He still owns nearly 12% of the company he set up in Glasgow in 1988.