The 海角视频-wide distributor of Ted Baker clothing, Baird Group, has reported a loss following a significant restructuring to concentrate on its Suit Direct brand. The Leeds-based group disposed of its license to sell Ben Sherman clothes, shut down unprofitable stores, cut over 100 jobs and appointed a new CEO as part of the changes.
Consequently, the group's turnover for the 11 months leading up to the end of 2023 was £49.3m, a decrease from the £82.5m reported for the year ending 28 January 2023. Recently filed accounts with Companies House show that the group went from a pre-tax profit of £358,000 to a loss of £9m.
The company also reduced its workforce from 565 to 434 during this financial period. Retail store turnover dropped from £36.9m to £23.6m, online sales fell from £11.7m to £9.4m, and wholesale turnover was cut from £33.9m to £16.2m.
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The group's 海角视频 turnover decreased from £75.2m to £48.6m, in the rest of Europe it fell from £5.6m to £652,000, and in the rest of the world, it dropped from £1.5m to £58,000. In October, Mark Cotter stepped down as CEO and was succeeded by Koran Gul two months later.
Since 2020, Baird Group has held a license to design and produce Ted Baker formalwear. The group also sells brands such as Jeff Banks, Gibson London, Antique Rogue, Alexandre, Limehaus, Scott & Taylor, and Racing Green, as reported by .
Ben Sherman license sold amid strategic review
A statement approved by the board read: "The period... saw a transition in strategy and personnel as the company adapted to the challenging trading environment following the pandemic and cost-of-living crisis."
"The year saw consumers continuing to be cautious with spending as inflation remained high in 2023, despite falling during the year."
"In February 2023, the board... undertook a full strategic review to assist with the future direction of the company."
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"The outcome of this review was to simplify and focus the business' activities on its Suit Direct brand trading through stores, online and through wholesale channels."
"To realise this objective, the business sold its Ben Sherman licenses which permitted the company to make and sell Ben Sherman clothing in the 海角视频 and some European territories."
"At the same time as this strategic review, the business undertook a full structural review centred around significant streamlining and cost saving activities."
"By September 2023, the business had sold on its Ben Sherman licenses and agreed to exit the European license by 31 December 2023 and achieved 90 per cent of restructuring and cost savings."
"The remaining business, focusing around Suit Direct, benefitted from simplified brand focus for the management team."
Suit Direct owner ‘still faces challenges’
The company has stated: "After a year of transition which has seen changes in senior personnel, the closure of unprofitable stores and the disposal of the Ben Sherman license, the company is now well positioned to drive forward and pursue its new strategic direction, overseen by a new CEO."
"This is epitomised by the opening of the Suit Direct store in Westfield, Stratford. This store is a blueprint for future store openings, alongside the upgrading of current real estate, a project which is already well underway."
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"A comprehensive product strategy review has led to a more refined product range with deeper stock levels, ensuring consistent and reliable availability."
"Pricing our garments correctly from the start builds customer confidence, reduces the need for extensive sales and enhances margins."
Additionally, the firm acknowledged: "The company still faces challenges in the market, as evidenced... regarding the uncertain future of the Ted Baker brand."
"The business will continue to manage costs effectively and monitor micro- and macro-economic trends."
"Despite the challenging trading environment, the business is well placed to maximise efficiencies and maintain growth."
Ted Baker closes remaining 海角视频 stores
In related news, it was announced earlier this month that the remaining 31 Ted Baker stores in the 海角视频 and Republic of Ireland were set to close, a decision that jeopardises over 500 jobs.
The decision was made following the administration of No Ordinary Designer Label, the company behind Ted Baker's 海角视频 stores, in March this year.
This final wave of closures comes after 15 stores were closed in April, resulting in the loss of 245 jobs.
Prior to its collapse into administration, Ted Baker employed just under 1,000 people in the 海角视频 and operated nearly 50 stores.
Authentic Brands Group, a US-based company, owns the intellectual property rights to Ted Baker, while No Ordinary Designer Label served as the holding company for the brand in the 海角视频.