Ted Baker moves forward with sale as Fat Face recruits bankers

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Both Ted Baker and Fat Face have made advances in their searches for a buyer.

Ted Baker Berlin store

Sycamore Partners is no longer in the running to by Ted Baker

Ted Baker said it has selected a “preferred counterpart” to its sale process in an update to the market today.

The fashion retailer revealed last month that it had received a number of non-binding proposals from potential buyers, which it has now reviewed and narrowed down to take into a due diligence process.

Ted Baker did not reveal who the preferred bidder is but said Sycamore Partners – whose bid began the sale process – was no longer in the running.

Due diligence is likely to take several weeks and Ted Baker reiterated that there is no certainty that an offer will be made.

Fat Face, meanwhile, has appointed bankers as it seeks a buyer.

The fashion retailer has hired Rothschild to help explore its options including a sale, two years after its private equity owners relinquished control to lenders.

Fat Face suffered unbearable debts at the beginning of the pandemic, which led Bridgepoint to hand over the reins to Goldman Sachs and Lloyds Bank, which reduced debts by £146.8m to £25.6m.

After a debt refinancing, Fat Face secured a £25m revolving credit facility until 2027.

The business reported an uptick in sales compared to pre-pandemic levels, up 4% to £125m in the six months to November 30.