As the doors close for the final time, the British high-street loses one of the strongest fashion brands established over the past 35 plus years. It shouldn’t have ended this way, but due to mismanagement, complicated licensing agreements, retail slowdowns and a multitude of factors, Ted Baker, as a clothing retailer in the UK, is no more. For now.
Ted Baker’s quirky take on men’s and womenswear made the British brand a perennial favourite that grew steadily internationally. After losing its founder Ray Kelvin, Ted Baker hit a rocky patch two years ago when it was snapped up by Authentic Brands Group for £211m, a considerable investment. Ted Baker joined its roster of nearly 50 global brands while Authentic’s European partner for Ted Baker ran into trouble earlier this year.
When you add in different retail leases and agreements and other complications, the free-fall into disappearing is often unstoppable. Ted Baker was on a downward trajectory.
Authentic Brands Group recently named United Legwear & Apparel Co., Peerless and BCI Brands as new the Ted Baker licensing partners for the US and Canada. In the UK, KMI Brands still hold the Ted Baker license for fragrance and Mondottica Group is its eyewear partner.
The rumoured licensing deal with Frasers Group has reportedly come to nothing. Authentic Brands Group will want to quickly strike a deal with a new European licensing partner to continue the brand equity built up over many years, but they will need deep pockets.
This brings us to the question of fashion brand comebacks and is it ever really possible to truly get back to where you were before? Founder-led brands have a momentum that completely goes when it implodes and the pieces are picked over by brand collectors. The name remains but the integrity is gone and it is much more difficult to reappear.
Kaia Gerber in DKNY
Ted Baker will join a growing list of brands attempting a comeback. Brands like Scotch & Soda are reopening stores under its new ownership (it was recently acquired by GAB Group) and DKNY has just announced Kaia Gerber as its face for a second season (following its relaunch) while celebrating its 35th anniversary. Even Matches, which was so ruthlessly culled by Fraser Group just weeks after it was acquired from former owner Apax could be back. Frasers Group, chief financial officer, Chris Wootton, said, with regards to Matches: “We are still reviewing options, we still have the IP. It was a great brand and had a huge customer base, so things could be done with it if we so choose.”
Matches former Marylebone store
But, things move on, consumers move on, and it is much harder to start a fashion brand today than when many of these started. Many of these brands seem to open a token store here or there under the new ownership and then stall; like the name is enough.
It is a more difficult time economically and requires significant investment to relaunch. If they don’t make instant returns you can hear the Excel spreadsheets of the accountants quickly pulling back the rollout.
The reason many of these brands survive is because of their differing licensing deals, but it is also the reason many of them fail. Can you ever come back in the same way, particularly if that was the reason for disappearing in the first place?
