Ted Baker and Brooks Brothers: End of an Era

Discover how Ted Baker and Brooks Brothers’ liquidation sales are impacting Canada and the U.S. Learn about the reasons behind the closures and the forecasted sales during this period.

The Beginning of the End

In a move that shook the retail landscape, Ted Baker, Lucky Brand, and Brooks Brothers have announced the closure of several stores across Canada and the United States. The decision comes in the wake of dwindling sales, forcing these iconic brands into insolvency proceedings.

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Liquidation Sales Unveiled

Ted Baker Canada wasted no time in announcing liquidation sales, encompassing nine out of 25 stores in Canada and all U.S. locations of the brand. This move extends to all Brooks Brothers and Lucky Brand outlets in Canada as well.

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Brooks Brothers: The Unraveling Story

The chain of events leading to this moment traces back to March when Ted Baker’s British arm entered administration under UK insolvency laws. This step allows companies to restructure or offload businesses facing financial turmoil.

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Brooks Brothers
Brooks Brothers

Ted Baker Canada sought protection from creditors on April 24 through Canada’s Companies’ Creditors Arrangement Act and simultaneously initiated U.S. Chapter 15 bankruptcy proceedings. Documents filed in the Ontario Superior Court of Justice cited liquidity constraints arising from negative cash flows and working capital issues.

Ownership and Acquisitions

The North American operations, governed by four entities, operate under license with affiliates of Authentic Brands Group based in New York. Authentic Brands, known for its diverse portfolio including Barneys and Forever 21, acquired Ted Baker in 2022 after sealing deals with Brooks Brothers and Lucky Brand in 2020.

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Blame Game and Operational Challenges

Management attributes the financial strain to poor sales performance in North America, compounded by supply chain disruptions from European partners failing to meet payment obligations.

A Glimpse of Hope?

While liquidation seems inevitable, there’s a faint possibility of salvaging some stores through third-party transactions. Gordon Brothers Canada has been tasked with overseeing the liquidation process, expected to conclude within 12 weeks.

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Forecast and Workforce Implications

Despite the turmoil, Ted Baker Retail projects substantial sales and cash flow. However, the fate of its 280 Canadian and 350 American employees remains uncertain.


1. Can the stores be saved?

There’s a slim chance of salvaging some stores through third-party transactions before May 17.

2. Who is overseeing the liquidation process?

Gordon Brothers Canada has been appointed to handle the sale.

3. What led to the financial strain?

Poor sales performance in North America, coupled with supply chain disruptions, were major contributors.

4. How long will the liquidation process take?

The process is expected to conclude within 12 weeks.

5. What is the projected sales and cash flow during the liquidation period?

Ted Baker Retail anticipates total sales of US$74.5 million and a net cash flow of US$25.1 million between April 28 and Aug. 4.

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