UK’s Ted Baker surges most in two years over Sycamore bid

Bloomberg

Ted Baker shares gained the most in almost two years after Sycamore Partners Management said it’s considering making an offer for the UK fashion brand, which lost more than 90% of its value in the past four years.
The private equity firm said the considerations are in the early stages and there’s no certainty it will make an offer. Ted Baker shares rose as much as 23% in early trading, giving the company a market value of 223 million pounds ($293 million).
Chief Executive Officer Rachel Osborne has been seeking to revive Ted Baker by cutting debt and product markdowns, boosting online sales and refreshing the brand. The retailer’s founder Ray Kelvin departed in 2019 after being accused of inappropriate hugs and other behavior in the workplace, which he denied. The company last month reported a 35% gain in fiscal fourth-quarter revenue.
“The Board is confident in
the company’s independent prospects,” Ted Baker said, adding that it would evaluate any offer “against the strong shareholder value creation that it believes can be delivered as a standalone company.”