Luxury retailer Ted Baker Canada is seeking creditor protection

The Canadian Press

· Posted: Apr 26, 2024 3:21 PM EDT | Last Updated: 8 minutes ago

The owners of Ted Baker's Canadian operations have filed for creditor protection in a bid to help the retailer get enough "breathing room" to decide whether to liquidate and wind down the business or pursue other unspecified alternatives.

In court filings Wednesday, lawyers for the ownership group — OSL Fashion Canada Inc. and OSL Fashion Services Inc. — say the clothing brand is facing "significant" liquidity challenges and has been "unsuccessful" in reducing costs, improving sales and reaching positive cash flow in Canada.

OSL Fashion Canada and OSL Fashion Services bought an equity interest in Ted Baker's Canadian and U.S. operations in March 2023 from Authentic Brands Group (ABG)'s No Ordinary Design Label (NODL) subsidiary.

The Ted Baker Canada owners have licensing agreements with NODL and ABG, whose partners pay suppliers in the Ted Baker supply chain, but the Ted Baker Canada owners say some of those payments have not been made, causing "substantial disruptions."

NODL's recent insolvency proceedings in the U.K. have also exacerbated matters, causing some of Ted Baker Canada's suppliers to accelerate payment terms.

ABG owns Ted Baker, Lucky Brand and Brooks Brothers; the three banners represent 25 stores in Canada.