Ted Baker founder supports Sycamore bid - report
Ted Baker founder Ray Kelvin — who still owns a double-digit stake in the firm — is supporting the idea of taking the business private following multiple offers from Sycamore Partners and the launch of a formal sale process.
Kelvin owns 11.5% of the shares and The Sunday Tines reported that he believes Sycamore could come up with the investment cash that the company needs to power ahead with its recovery and expansion strategy.
The former Ted Baker chief was ousted after the so-called hug-gate scandal but his sizeable holding means he still has a loud voice when it comes to decisions such as whether to sell or not. And he's reportedly frustrated over its poor performances in the last few years.
Sycamore confirmed last week that it was taking part in the formal sale process, something that hadn’t been a given after several of its bids were rejected. Ted Baker had said that its offer of around £250 million significantly undervalued the firm.
It’s still not known who else is likely to enter the race for the retailer that has endured several years of falling sales and a plunging share price.
However, recent signs of recovery at the business suggest it could be seen as a good buy for a number of private equity groups. However, as Sycamore’s rejected bids show, any of them that were hoping to buy it ultra-cheaply could be disappointed.
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