Ted Baker’s chosen bidder drops takeover plans as hunt for buyer continues
Ted Baker’s chosen suitor has decided to drop its sales bid for the fashion retailer at the eleventh hour.
The London-listed company confirmed that it had selected a chosen firm to oversee a public to private takeover at the end of last month.
There has been speculation that this firm was Reebok and Forever 21 owner Authentic Brands, with Sky News reporting that a £300m ($379.35m) deal had been in the works.
However, the retailer confirmed on Tuesday that its preferred bidder did not intend to proceed with an offer for the firm.
Shares in the company tumbled as much as 19 per cent on Tuesday morning.
While Ted Baker did not disclose the reason for the change of heart, it said it was not linked to any due diligence review issues.
It comes after private equity giant Sycamore pulled out of the race to snap up the company last month.
The high street name said on Tuesday that its board had received “a number of other non-binding proposals” last month.
“The board will now determine whether to proceed with any of those proposals,” an update posted on the London Stock Exchange on Tuesday morning stated.
Ted Baker made it clear that there was “no certainty that an offer will be made, nor as to the terms on which any offer will be made.”
It said further updates regarding the formal sales process would be made “when appropriate”.
The change of heart may cause some potential buyers to think twice about putting forward a proposal.
However, Sarah Riding, retail and supply chain partner at law firm Gowling WLG, believes Ted Baker still continues to be “an attractive and viable retail acquisition option for many other high profile buyers.”
She added: “There is a challenge ahead for any new buyer though, in terms of maximising its potential through new product lines, online revenue streams and even overseas market penetration and expansion in a revitalised post-pandemic setting.
“However, while attracting a buyer for this purpose is now the priority, questions around the brand’s continuation and enhancement here in the UK should be front of mind for the new owner.”