Last month, the troubled UK fashion retailer, Ted Baker, revealed that it had selected a preferred bidder after putting itself up for sale in April. However, on Tuesday (7 Jun), the fashion chain confirmed that this suitor will not be making a takeover offer. The news sent shares in Ted Baker tumbling 24%.
The company, which listed in 1997, did not disclose its preferred bidder but a media report last month suggested it was the New York-based Authentic Brands and that it was apparently willing to offer more than £1.50 per share.
The company’s value has plummeted since the forced departure of founder and former CEO Ray Kelvin amid accusation of misconduct in 2019. This was followed by an accounting scandal in 2020. By Tuesday morning, Ted Baker shares were down to £1.03 from a 2015 peak of £29.72 each.
Mr Kelvin has always denied any wrongdoing and still owns nearly 12% of the company he founded in 1988.