‘Without Ray Kelvin’s idiosyncratic imprint, has Ted Baker lost its identity?’

Teneo is lined up to take charge of No Ordinary Designer Label, which trades as Ted Baker in the UK.

It’s a sad moment for the fashion retailer’s staff and a setback for its owner, which said at the time of the deal that “Ted Baker is poised for continued growth and success”.

Authentic farmed out UK and Europe distribution of Ted Baker to Dutch business AARC, which struck a partnership to run the retailer’s 120 shops and website.

However, it seems – certainly in Authentic’s view, since AARC has said nothing and was not contactable – to have fallen short of expectations and the two acrimoniously parted ways last month.

“Ted’s likely collapse into administration shows that it had perhaps become a more ordinary brand than those close to it liked to think”

Authentic said: “Despite our efforts to support AARC through recent financial difficulties, including providing the business with a short-term loan, it has consistently failed to inject promised funding into the business and meet its financial obligations to Authentic.”

Whatever the rights and wrongs, Ted’s likely collapse into administration shows that it had perhaps become a more ordinary brand than those close to it liked to think.

While some fashion retailers have had it tough over the last few years as the cost-of-living crisis limited customers’ spending power, strong brands – whether Next, Primark or Marks & Spencer – have outperformed.

A consumer brand has to stand for something more than a name on a label. Before its sale to Authentic, there were signs that the Ted Baker brand was under pressure. From 2019 onwards, the retailer issued a raft of profit warnings and in 2020 it had to swing the axe on hundreds of roles.

All of that came on the back of the exit of founder Ray Kelvin after he was embroiled in a controversy over inappropriate workplace behaviour, including “forced hugging”, which he denied at the time.

During his time in charge, he built a business with a distinct identity – Ted was like his alter ego and his spirit infused the brand.

The departure of founders is often a problem in retail, frequently heralding reverses of fortune in the years to come. Long-term success proved elusive for New Look, for instance, after Tom Singh sold up. The same was true at Cath Kidston.

Sometimes founders can’t stay away and their continued involvement is not a cure-all – Julian Dunkerton at Superdry is the obvious example, and it remains to be seen if his presence is enough to revive the fortunes of the embattled business.

But you have to ask: without the idiosyncratic imprint of Kelvin, has Ted Baker lost its identity?

A true brand and sustainable business should outlast the involvement of founders. To be fair, Authentic has built up a strong stable, including famous names such as Reebok and Hunter, through to Sports Illustrated and even the rights to Marilyn Monroe’s image.

“It will need a partner that can nurture its brand identity rather than try to simply push what may become AN Other label”

Authentic seemed, this week, still to be committed to a future for Ted Baker, whose stores and website continue to trade.

Authentic’s chief strategy and transition officer John McNamara told Sky News: “We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began.”

If so, Ted Baker will need a partner that can nurture its brand identity rather than try to simply push what may become AN Other label through AN Other chain of shops.

For the brand to be burnished again post-administration, it will need a UK retail partner that can do it justice – pronto. Perhaps Next, which has snapped up a variety of brands including troubled names such as Cath Kidston for its Total Platform, might see an opportunity?