British fashion chain Ted Baker draws U.S. takeover interest

The Ted Baker brand is seen at their retailer on the Woodbury Widespread Premium Shops in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly

March 18 (Reuters) – Sycamore Companions is within the early stage of creating a attainable money provide for style retailer Ted Baker (TED.L), the personal fairness agency stated on Friday, within the newest signal of sturdy U.S. curiosity in taking on British entities.

New York-based Sycamore, which specialises in offers within the struggling retail sector, has till April 15 to make a agency provide for the London-listed Ted Baker. Sycamore stated there was no certainty a suggestion could be made and didn’t disclose what the phrases is likely to be for any deal.

Ted Baker stated it has not obtained a suggestion however would consider any proposal, though it was assured in its impartial prospects.

Shares of the upmarket retailer jumped 20% on Friday however have been nonetheless buying and selling simply above a pound every, in contrast with the almost 30 kilos it was value in 2015, giving it a present market valuation of almost 220 million kilos ($289.26 million), Refinitiv Eikon knowledge confirmed.

Takeover curiosity in British firms, starting from defence teams to a number one grocery store, is its highest in years, because the pandemic and uncertainties linked to Britain’s departure from the European Union have lowered valuations.

Ted Baker is in the course of three-year turnaround plan beneath boss Rachel Osborne because it tries to spice up its on-line presence and rebuild its picture after revenue warnings and accounting points.

Osborne took cost in 2019 in a administration reshuffle that included the exit of former chief government Ray Kelvin following allegations of inappropriate behaviour. Kelvin has denied the allegations and retains a virtually 12% stake within the firm he based in 1988 in Glasgow.

Ted Baker, which has almost 400 areas largely in Europe, North America and the UK, stated in February it was “cautiously optimistic” about outlook for the present yr as folks slowly return to working in places of work. learn extra

($1 = 0.7606 kilos)

Reporting by Chris Peters in Bengaluru; Modifying by Subhranshu Sahu, Anil D’Silva and Barbara Lewis

: The Thomson Reuters Trust Principles.