(Alliance News) - Ted Baker PLC on Monday said it has rejected two cash takeover offers from New York-based private equity firm Sycamore Partners Management LP.
The London-based fashion retailer explained the bids, of 130 pence and 137.5p, each "significantly" undervalued the company.
Ted Baker added that it could deliver value to shareholders well above Sycamore's offers.
"The management actions taken over the last two years have put the business on a firm footing, and it is now well on the way to recovery following a turbulent period. The board is focused on delivering value for Ted Baker's shareholders well in excess of the price offered by Sycamore," the company said on Monday.
Ted Baker has suffered a slew of setbacks in recent years which have sent the stock lower. It was hit by complaints of inappropriate hugging made against then chief executive Ray Kelvin in 2019. It then went through three CEOs within a year, as well as several profit warnings.
The pandemic, which hit retailers hard, also followed.
Ted Baker's shares plummeted to 341.83p each towards the end of 2020 from 1,250.72p in late 2018.
The stock has since fallen further.
On Monday morning in London, the shares stood at 121.32p, 3.9% down from Friday. Compared to a year ago, its shares are up 6.7%. However, it is down around 95% from five years earlier. It has a market capitalisation of GBP224.4 million.
The beleaguered retailer, under the leadership of Rachel Osborne since March 2020, has delivered more positive news in recent months. In its half-year ended August 14, its pretax loss narrowed to GBP25.3 million from a GBP86.4 million a year before.
Last month, it posted a reported 35% year-on-year rise in sales during its fourth quarter ended January 29, proving itself capable of weathering headwinds provided by the emergence of the Omicron variant of Covid-19.
By Tom Budszus; tombudszus@alliancenews.com
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