Ted Baker Canada is holding store-closing sales across select locations after filing for bankruptcy in April.
The retailer operates Ted Baker in Canada, Ted Baker Limited in the United States, Brooks Brothers in Canada, and Lucky Brand in Canada. Ted Baker was founded in the U.K. It has locations across North America, Europe and the Middle East.
Sales are only available at retail locations, Ted Baker said.
“As of May 10, 2024, online shopping is no longer available for the time being, and all sales are final across all of the Company’s retail locations,” the retailer said in a statement.
Authentic Brands Group, which also owns Forever 21 and Aeropostale, acquired Ted Baker for $253.5 million in 2022.
Ted Baker is No. 261 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region.
Which Ted Baker locations are closing?
Sales will take place at all 31 Ted Baker locations in the U.S. and nine Canadian locations, the retailer said. The retailer has locations in California, Florida, Georgia, Illinois, Massachusetts, Michigan, Nevada, New York, Pennsylvania, Texas and Washington.
Eight Brooks Brothers Canada stores and seven Lucky Brand Canada stores will also hold liquidation sales. Both are concentrated in Ontario. Brooks Brothers and Lucky stores in the U.S. will not be impacted.
All items will be priced up to 30% off original prices, Ted Baker said. All purchases are final sale, with no returns.
Ted Baker bankruptcy
On April 24, Ted Baker filed for insolvency in the Ontario Superior Court of Justice. On the same day, it filed for Chapter 15 bankruptcy in United States Bankruptcy Court for the Southern District of New York to have the Canadian proceedings recognized in the U.S.
A month earlier, the men’s fashion chain entered insolvency in the U.K. — the country’s version of bankruptcy.
Ted Baker attributed many of its problems leading to bankruptcy to its European partners. Specifically, the filing mentions No Ordinary Designer Label, an operating partner in Europe.
In the filing, Ted Baker addressed several reasons it was filing for bankruptcy.
- Supplier delays: No Ordinary Designer Label was responsible for paying suppliers for Ted Baker Canada. When Ted Baker Canada paid the European partner for merchandise, they did not pay suppliers on time because of their own financial troubles, the filing said.
- Accelerating payments: Leading up the U.K. bankruptcy, suppliers and manufacturers began demanding upfront payments from Ted Baker Canada.
- Delays in the new tech stack: As part of the Authentic Brands acquisition, Ted Baker Canada had to invest in new technology quickly. Then, delayed migration to the new tech stack during the busy season exacerbated supply chain problems, the retailer said.
- Ecommerce issues: Ted Baker Canada was unfairly compensated for giving up the TedBaker.com URL to Authentic Brands Group, the filing said.
- Poor sales performance: Sales from January 2024 to April were trending 30% below the previous year, in part due to supply chain disruptions.
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