The homeowners of Ted Baker’s Canadian operations have filed for creditor safety in a bid to assist the retailer get sufficient “respiration room” to determine whether or not to liquidate and wind down the enterprise or pursue different unspecified alternate options.
In courtroom filings Wednesday, legal professionals for the possession group — OSL Style Canada Inc. and OSL Style Companies Inc. — say the clothes model is dealing with “vital” liquidity challenges and has been “unsuccessful” in decreasing prices, enhancing gross sales and reaching optimistic money movement in Canada.
OSL Style Canada and OSL Style Companies purchased an fairness curiosity in Ted Baker’s Canadian and U.S. operations in March 2023 from Genuine Manufacturers Group (ABG)’s No Atypical Design Label (NODL) subsidiary.
The Ted Baker Canada homeowners have licensing agreements with NODL and ABG, whose companions pay suppliers within the Ted Baker provide chain, however the Ted Baker Canada homeowners say a few of these funds haven’t been made, inflicting “substantial disruptions.”
NODL’s latest insolvency proceedings within the U.Ok. have additionally exacerbated issues, inflicting a few of Ted Baker Canada’s suppliers to speed up cost phrases.
ABG owns Ted Baker, Fortunate Model and Brooks Brothers; the three banners signify 25 shops in Canada.
