Ted Baker’s largest lender has fallen out with Teneo, the chain’s administrator, over a conflict of interest, The Times reported.
Ted Baker’s largest lender, Secure Trust Bank, reportedly attempted to replace Teneo as administrator of the struggling British fashion chain over a conflict of interest.
Teneo is owned by CVC, the same private equity firm that owns a stake in Ted Baker owner Authentic Brands. This is understood to be a concern for Secure Trust.
The bank tried to replace Teneo with FRP Advisory as it was concerned Teneo might have an incentive to act within the interests of its owner rather than the retailer’s creditors.
However, a court judge ruled that Teneo should remain in place as administrator.
A source close to CVC denied claims of a conflict of interest and said that all of its portfolio companies were run by independent teams.
This comes after No Ordinary Designer Label, which trades under the Ted Baker brand, filed a notice of intention to appoint Teneo to lead the process of its UK operations in March.
Since then 15 Ted Baker stores have closed their doors across the UK, resulting in 245 job losses.
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