The debate on whether the luxury fashion industry is in trouble or not is a subject that is frequently discussed among those passionate about it. However, the high street brand, Ted Baker has closed its doors in the United States after declining sales. But, could this be a wake up call for the conventional luxury brands like Gucci, Prada, YSL and others?
According to Fashion United, all Ted Baker stores in North America are reportedly set to close following the British retailer’s bankruptcy filing last month. The shutdown includes 31 U.S. stores and nine in Canada, and online shopping in these regions is also no longer available.
The Ted Baker Group, which includes Ted Baker Canada and Ted Baker Inc., filed for Chapter 15 bankruptcy in the U.S., citing liquidity constraints and negative cash flows. The group’s UK and European arm also faced financial difficulties, leading to the appointment of administrators.
Ted Baker closing down doors in the US
Redditors discussed the topic heavily, a user claims to have worked for the brand and stated that they were told that the US branch is not related to the UK branch. Furthermore, the user claims the brand was severely mismanaged for a number of years.
For the most part, users are shocked that the brand is suddenly closing down their doors. Apparently, the brand’s staff found out at the same time as their customers did. Following that, many are sad that the British brand may be gone forever.
It appears that the brand did not capitalize the mid-range market as much as Coach, Kate Spade, Michael Kors and Tory Burch did after the major price rises conventional luxury brands had. Regardless, it is unclear if their Asia stores will still be in operation or not, as they too appear to be lacking in customers.
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