Ted Baker’s largest creditor has fallen out with the chain’s administrators over claims of a conflict of interest.
The retailer’s main lender Secure Trust Bank attempted to replace Teneo as administrators as it is owned by the same private equity firm that owns a stake in Ted Baker owner Authentic Brands, The Times reported.
It is understood that Secure Trust was concerned that Teneo might have an incentive to act within the interests of its owner CVC, rather than creditors.
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The bank tried to replace Teneo, which were appointed in March by Ted Baker’s independent director, with fellow restructuring firm FRP Advisory.
However, a court judge ruled that Teneo should remain in place as administrators.
A source close to CVC denied claims of a conflict of interest and said that all its portfolio companies were run by independent teams.
Documents filed by Teneo this week show that Ted Baker owes nearly £60m to 612 unsecured creditors that are unlikely to be repaid.
Administrators said the £15.6m owed to Secure Trust is expected to be paid.
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