Authentic Brands Group, the US-based owner of Ted Baker, has moved to head off a cash crunch at the fashion retailer as the company appointed to run operations struggles to raise financing.
Authentic Brands, which bought Ted Baker for £211m last year, has retained ownership of its brand and intellectual property but outsourced global operations for more than 20 different companies, according to The Sunday Times.
In April, Dutch company AARC was appointed to run Ted Baker’s shops and online operations in the UK and Europe.
Authentic Brands recently provided advisers from FTI Consulting for several months to arrange longer-term financing to underpin the struggling Ted Baker brand.
City sources said that AARC will need to turn to “alternative lenders” charging punitive rates of interest.
While an unseasonably warm autumn has seen clothing sales slump overall, Ted Baker’s sales have risen 7% this year.
Authentic Brands has grown into a $20bn (£16.5bn) brand management and licensing empire, led by founder Jamie Salter who made his name at distressed investor Hilco.
Authentic Brands, which owns brands like Reebok, has also begun branching out into sports and entertainment, notably through a partnership with David Beckham.