// The American private equity firm Sycamore Partners is weighing a potential takeover bid for Ted Baker
// The firm is said to have hired Numis to examine a potential offer for the retailer which has a market capitalisation of approximately £170m
Sycamore Partners is in the early stage of making a possible cash offer for the embattled fashion retailer Ted Baker, Sky News reports.
The American private equity firm is said to have hired Numis, the investment bank, to examine a potential offer for the retailer which has a market capitalisation of approximately £170m.
The business saw its shares surge by 8% towards the close of trading on Thursday, with one source reporting that Sycamore was considering making a formal approach to the board of Ted Baker, although it is understood that it has yet to do so.
Another source told Sky News that it was possible that Sycamore would decide not to make a formal approach to Ted Baker, or that public disclosure of its interest could prompt it to walk away.
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Sycamore, which specialises in investments in the retail sector, previously owned brands including Kurt Geiger and his week, the firm was also linked with a $9bn takeover bid for the US department store chain Kohl’s.
It was also reported to be among the suitors circling the high street chemist and pharmacy chain Boots, although City insiders have expressed scepticism about Sycamore’s actual involvement in the auction.
Ted Baker’s shares have fallen a further 20% during the last year, and it is unclear what would be regarded by shareholders as an acceptable takeover offer if a formal approach is made.
The fashion retailer currently trades from hundreds of standalone shops and concessions worldwide, employing thousands of staff, although it was left without a permanent chairman following the sudden death of John Barton late last year.
Ted Baker has struggled recent years, especially in 2019 when founder Ray Kelvin left amid claims of inappropriate behaviour towards female colleagues.
Since then it has been hit by profit warnings, accounting mishaps and Covid-19 related issues. In 2020, it axed hundreds of jobs and raised £100m to shore up its balance sheet.
Rachel Osborne, its chief executive, said last month: “Ted is emerging from COVID a stronger more sustainable business and we’re excited for the future.”
A Ted Baker spokesman declined to comment to Sky News on Thursday while Sycamore’s external public relations adviser did not respond to emails or telephone enquiries.
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