Wednesday, May 22, 2024

Ted Baker’s Canadian operations seek protection from lenders

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Ted Bakers Canadian operations seek protection from lenders

The owners of Ted Baker’s Canadian operations have filed a court order seeking protection from creditors. The application is made to allow sufficient time for a decision on whether to close the business or seek an unspecified alternative.

In a court filing on April 24, lawyers for owners OSL Fashion Canada Inc. and OSL Fashion Services Inc. said the clothing brand is facing a major liquidity crisis. It also failed to cut costs, increase sales and increase cash flow in Canada.

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OSL Fashion Canada and OSL Fashion Services purchased equity interests in Ted Baker’s Canadian and US operations in March 2023 from the Authentic Group brand’s No Ordinary Design label subsidiary. Owners of Ted Baker Canada have licensing agreements with NODL and ABG.

Suppliers in Ted Baker’s supply chain are paid by NODL and ABG partners. But the money has not been paid, said the owner of Ted Baker Canada, which is causing a major disruption in operations. The recent bankruptcy proceedings of NODL in the UK have worsened the situation.

Ted Baker Canada has 25 stores in Canada under three banners, along with Lucky Brands and Brooks Brothers retail operations.

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