Authentic cuts ties with AARC, reportedly mulling CVA for Ted Baker

Authentic Brands Group is believed to be mulling a possible Company Voluntary Arrangement (CVA) for Ted Baker according to reports that began circulating after the brand management firm confirmed it had cut ties with AARC, a Dutch company that had been running the brand’s stores and e-commerce business in the UK and Europe.

A spokesperson for Authentic noted that the decision to end its AARC partnership came despite efforts to support the firm through “recent financial difficulties”, adding that AARC had “consistently failed to inject promised funding into the business and meet its financial obligations to Authentic”.

The statement continued: “None of us expected this. We were given assurances and have been disappointed. We’re limited on what we can disclose at this stage, but we can assure all concerned that we are focused on addressing this issue to continue to support the Ted Baker brand.”

In light of the relationship’s end, Authentic has removed AARC as a shareholder, with a new independent board having been brought in to manage operations in its place.

AARC removed as shareholder, Authentic reportedly planning store closures

The members have been tasked with “explor[ing] all options to ensure the future of the business”.

On announcing the termination, reports began circulating of the possible next steps for Ted Baker, with The Telegraph stating that Authentic – which had bought the British brand two years ago in a 211 million pound deal – was close to appointing restructuring experts.

The media outlet suggested that a CVA was a possible avenue of exploration, as Authentic possibly looks to reduce Ted Baker’s store numbers and tackle hiked up rent bills.

Concluding in their statement, Authentic’s spokesperson said: “Ted Baker has strong partners in place around the world and continues to be a powerful brand in the Authentic portfolio.

“Despite the difficulties facing the UK and European business, we remain committed to Ted Baker and are confident in the brand’s long-term success under Authentic’s stewardship.”