Dutch operator of Ted Baker retail stores on the verge of bankruptcy
The Dutch fashion house AARC Holding, which operates the stores of iconic British fashion brand Ted Baker in the United Kingdom and mainland Europe, has been granted deferral of payment. The American owner of the brand name blames the Dutch company for the demise of the stores, RTL Nieuws reports.
Administrator André Jansen of AARC confirmed the suspension of payments to RTL. Jansen is also the administrator of two sister companies that went bankrupt at the start of April.
Ted Baker was founded by the British entrepreneur Ray Kelvin in the late 1980s. In the 1990s, the company rapidly grew into an international, listed brand. It did extremely well for 30 years but started running into trouble in 2019. Founder Kelvin was forced to depart amid accusations of transgressive behavior, setting off a downward spiral that intensified during the coronavirus pandemic.
In the autumn of 2022, the American brand house Authentic Brands purchased the ailing fashion group. At the start of 2023, the Dutch fashion house AARC took over the entire European and UK store network and webshop from the Americans and licensed the brand name Ted Baker. The chain was struggling. Since the acquisition by Authentic Bransds and then AARC, the number of Ted Baker stores in the UK and Europe has halved. AARC also ran into financial problems.
The house of cards collapsed in February when Authentic Brands cut ties with AARC and requested a deferral of payments for Ted Bakers’ British parts. The Americans blamed the Dutch company for the collapse, accusing it of not meeting its financial obligation.
AARC was left without millions in revenue from the Ted Baker stores, directly resulting in the bankruptcy of two AARC subsidiaries early in April, administrator Jansen wrote in his first bankruptcy reports. Now the holding company has also been granted deferment of payment, often the gateway to bankruptcy.
In the Netherlands, Ted Baker only has two stores of its own, one in Amsterdam and one in Roermond. Both are currently closed. Ted Baker also has sales points in seven De Bijenkorf branches. It is unclear whether they’re still operating. A De Bijenkorf spokesperson told RTL that they couldn’t comment.
This near bankruptcy is not the first blow to fashion outlets in the Netherlands this month. On Wednesday, bankruptcy administrators announced that attempts to save the Netherlands retail outlets from the Scotch & Soda clothing label were unsuccessful. The 28 Scotch & Soda stores in the Netherlands, with around 320 employees, are closed for good.
