Sycamore Partners, the New York private equity firm specializing in retail investments, is considering a cash offer for Ted Baker, the United Kingdom fashion retailer, Reuters reported Friday (March 18).
The news outlet said Sycamore has until April 15 to make an offer for the publicly traded company. Sycamore said it is unclear whether an offer will be made and declined to disclose any terms.
The move is the latest signal of strong interest from the United States in British companies.
At the close of last year, Ted Baker had 521 stores worldwide, the majority of which are in the United Kingdom and Europe, according to Statista.com. The British luxury retailer launched in Glasgow in 1988 and operates its own-brand stores and concessions. The retailer is traded on the London Stock Exchange as “No Ordinary Designer Label Limited.”
For its part, Ted Baker said it has yet to receive an offer but will evaluate any proposal, the report said.
While shares of the retailer increased 20% Friday, it is trading at slightly above a pound per share, compared to nearly 30 pounds in 2015, according to Refinitiv Eikon data.
Ted Baker is in the midst three-year turnaround plan as it seeks to increase its online presence and rebuild its image.
Last summer, the chain tested pop-up stores in small towns as the chain struggled with sales due to the pandemic.
Read more: Luxury Retailer Ted Baker Tries Pop-up Stores Away From City Centers
More than one-third of Ted Baker’s stores are in large cities and shopping centers. With its new strategic pivot, the retailer plans a trial of “extremely short leases” of less than six months in smaller towns and shopping centers.
At the time, CEO Rachel Osborne told the Financial Times that the stores have been located to benefit from increased foot traffic before the pandemic hit.
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