• About
  • Privacy Policy
  • Terms
  • Contact
Friday, January 27, 2023
Financial Eye News
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • VideosNew
No Result
View All Result
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • VideosNew
No Result
View All Result
Financial Eye News
No Result
View All Result

Sycamore considers bid for UK fashion group Ted Baker

March 18, 2022
in Companies
Reading Time: 3 mins read
51 0
ADVERTISEMENT

New York-based private equity group Sycamore Partners is considering an offer for UK clothing company Ted Baker, prompting shares in the fashion chain to soar.

Sycamore, which specialises in investing in retail and consumer businesses, said in a statement on Friday that it was “in the early stages of considering making a possible cash offer for Ted Baker”, although it added that “there can be no certainty that an offer will ultimately be made”.

The firm has until April 15 to decide whether to bid. Sycamore has about $10bn of capital invested in companies, including US office supplies group Staples.

Ted Baker said in response that “it has not received any approach from Sycamore”, adding that its board is “confident in the company’s independent prospects”.

“The board . . . would evaluate any offer for the company against the strong shareholder value creation that it believes can be delivered as a standalone company,” the company said in a statement.

Ted Baker’s shares added around a fifth to their value in early London trading on Friday, swinging their gains for the year into positive territory as analysts welcomed the possibility of the purchase.

“It looks like someone might bring an end to Ted Baker’s horrific time as a listed company,” said Russ Mould, investment director at AJ Bell, noting that the company’s share price lost half of its value between September 2021 and February this year.

Ted Baker, which had a market capitalisation of about £180mn before the offer was made public, struggled during the pandemic and lockdowns because more than a third of its stores were located in large cities and shopping centres.

Losses ballooned and forced the retailer to respond with heavy discounts. Revenue began to rise again last year and the company recorded sales of £199.3mn in the 28 weeks to August, an increase of 17.6 per cent, chalking up a pre-tax loss of £25.3mn.

“[The latest figures are] encouraging but the market has yet to be won over by the numbers, so Sycamore must be putting a lot of faith in the company’s turnround potential,” Mould said.

He added that as households grapple with rising inflation and living costs, retailers could face major headwinds in the future.

Ted Baker appointed Rachel Osborne as chief executive in 2020 and launched a turnround plan after a number of profit warnings. It has since focused on refreshing its brand, which was known for its formalwear, and worked at boosting its online presence. A pandemic shift in clothing tastes has prompted it to offer more casual options.

Sarah Riding, retail and supply chain partner at law firm Gowling WLG, said that while a sale was not yet certain, interest from Sycamore pointed to opportunities for overseas expansion.

Ted Baker was founded in 1988 by Ray Kelvin, who drove the company to achieve £640mn of annual sales at its peak with a valuation of £1.4bn.

Kelvin resigned in 2019 after allegations of inappropriate behaviour, which he denied, but he still plays an advisory role at the company following an agreement signed in 2020.

Numis Securities is acting as Sycamore’s financial adviser on the potential deal.

Video: How private equity firms can resemble the empires they once broke up

Source: Financial Times

ADVERTISEMENT
Share6Tweet4Share1SendShareSend

Related Posts

Companies

Bame workers report pervasive discrimination in finserv

December 5, 2022
Companies

Rail industry enters last-ditch talks to avoid UK Christmas disruption

December 5, 2022
Companies

Glencore: dirty business provides an embarrassment of riches

December 5, 2022
Companies

Trucks: Tesla Semi pulls ahead as start-up rivals crash

December 5, 2022
Companies

Vodafone needs a radical new chief to bring about real change

December 5, 2022
Companies

Vodafone: departure of Nick Read should accelerate restructuring

December 5, 2022

Popular Stories

  • AIG to launch cut-price IPO of life and asset management unit

    48 shares
    Share 19 Tweet 12
  • EY boss targets $10bn boost from Silicon Valley tie-ups after break-up

    32 shares
    Share 13 Tweet 8
  • Tesla delays plan to restore Shanghai output to pre-lockdown levels -memo

    32 shares
    Share 13 Tweet 8
  • TV production giant Banijay to go public via Arnault-backed Spac

    30 shares
    Share 12 Tweet 8
  • Nio to Invest $32.8M Building R&D Labs in Shanghai By Financial Eye

    30 shares
    Share 12 Tweet 8
ADVERTISEMENT

Latest News

Taylor Swift Fans Sue Ticketmaster’s Parent Company

December 5, 2022

Fisker trades down following price cut at Citi By Financial Eye

December 5, 2022

UAW president faces run-off election as reformers make gains

December 5, 2022

Felipe Valls, 89, Whose Cuban Restaurant Became a Political Hub, Dies

December 5, 2022

Longroad buys 98-MW solar farm in California

December 5, 2022
Facebook Twitter LinkedIn

Financial Eye is one of the most trusted news sources for Financial News, global news and local USA news, we provide the news from the most trusted sources.

LEARN MORE »

Recent News

  • Taylor Swift Fans Sue Ticketmaster’s Parent Company
  • Fisker trades down following price cut at Citi By Financial Eye
  • UAW president faces run-off election as reformers make gains

Sections

  • Business
  • Climate
  • Commodities
  • Companies
  • Cryptocurrency
  • Cryptocurrency
  • Forex
  • Green Energy
  • Latest Financial News
  • News
  • Politics
  • Stock Market News
  • Technology
  • Videos

© 2022 Financial Eye News Media

No Result
View All Result
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • Videos

© 2022 Financial Eye News Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Subscribe To Our Daily News Round-Up.

The top ten most-read stories direct to your inbox

You have Successfully Subscribed!

You have Successfully Subscribed!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.