Ray Kelvin, the founder of fashion retailer Ted Baker, has expressed his support for the idea of making the company private, amidst multiple offers from Sycamore Partners and the initiation of a formal sale process. Although Kelvin was removed as the chief of Ted Baker following a scandal, he still holds a significant stake in the company, giving him influence in significant decisions like the sale of the company. He believes that Sycamore could bring the necessary investment to support the recovery and growth plans of Ted Baker. Kelvin has reportedly been frustrated by the company’s underperformance in recent years.

In the previous week, Sycamore confirmed its participation in the official sale process, despite having its earlier offers rejected by Ted Baker. The fashion retailer had considered Sycamore’s bid of around £250 million as significantly undervaluing the company. The race to acquire Ted Baker remains open, as potential buyers gauge the declining sales and falling share price the company has experienced in recent years. However, with recent indications of improvement, private equity groups may view it as a profitable investment. Those hoping to purchase the company at a discounted price may face disappointment, given Sycamore’s rejected bids, which suggested a higher valuation.

Useful links:
1. Ted Baker founder supports idea of going private
2. Sycamore confirms participation in Ted Baker sale process