(Bloomberg) — Ted Baker Plc slumped after the preferred bidder for the UK fashion chain ruled out making an offer.
The fashion retailer gave no reason why the counterparty pulled out but said Tuesday it wasn’t linked to its due-diligence review of Ted Baker. The stock fell as much as 16%.
Sky News reported last week that the preferred bidder was Authentic Brands Group Inc., which it said offered about £300 million ($373 million).
Authentic Brands is the owner of licensing and marketing rights to labels like David Beckham and Juicy Couture and has been a key consolidator in the retail industry. The New York-based company, founded by Jamie Salter, agreed to buy Reebok from Adidas AG last August for $2.5 billion.
Ted Baker said it has received other non-binding proposals and is determining whether to proceed with any of them.
Private equity fund Sycamore Partners Management LLC has already dropped out of the process.
Ted Baker Chief Executive Officer Rachel Osborne has been seeking to revive the company by cutting debt and product markdowns, boosting online sales and refreshing the brand. The shares have lost more than 90% of their value in the past four years.
Founder Ray Kelvin departed in 2019 after being accused of inappropriate hugs and other behavior in the workplace, which he denied. The company reported a 35% gain in fiscal fourth-quarter revenue in February.
(Updates with share reaction)
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