The proprietors of high-end fashion retailer Ted Baker Canada have filed for creditor protection, claiming the brand’s operations are struggling and failing to “achieve a positive cash flow.”
According to court filings, OSL Fashion Canada Ltd. and OSL Fashion Services Inc. operate fashion retail, wholesale, and e-commerce businesses under the Ted Baker banner in the US and Canada.
The applicants also operate Lucky Brand and Brooks Brothers stores in Canada.
In March 2023, OSL Fashion Canada and Fashion Services purchased equity interests of Ted Baker Canada and Ted Baker Limited from a company called No Ordinary Design Label (NODL), a subsidiary of Authentic Brands Group (ABG).
The court filing states that OSL Fashion Canada and Fashion Services’ struggles have been “primarily caused by the failure of certain of ABG’s operating partners to make payments,” impacting the North American supply chain of Ted Baker’s product mix.
NODL, which is the retailer’s holding company in the UK and Europe, also filed for insolvency in the UK, which has “further escalated” retail disruptions in North America.
OSL Fashion Canada and Fashion Services said the “breathing room” afforded by the Companies’ Creditor Arrangement Act (CCAA) will allow them to engage with stakeholders and consider the best way to consolidate their assets, which may lead to “potentially a liquidation and orderly wind-down of their operations.”
There are currently 14 Ted Baker stores across the country as well as 11 outlet locations.
As of April 2024, Ted Baker Canada employed 58 full-time and 72 part-time employees
in Canada.