Private equity giant Sycamore has pulled out of the race to snap up iconic fashion firm Ted Baker.
The retailer said the US private equity firm no longer part of its sale process, and revealed it had now received several revised takeover proposals from other parties.
“The board of Ted Baker also reserves the right to reject any approach or terminate discussions with any interested party at any time. The board confirms that Sycamore Partners Management L.P. is no longer participating in the formal sale process”, it said in an announcement this morning.
Ousted Ted Baker founder Ray Kelvin had notably given his support for taking the retail giant private following a rocky performance since his departure.
Kelvin has reportedly given his support to Sycamore after the formal sale process started earlier in April, stating that Sycamore would be able to provide the investment needed to turn the company around.
London-listed Ted Baker said it had selected a preferred counterparty to take forward the new proposals into a due diligence process, but did not reveal who this was.
Authentic Brands Group, the management company behind Reebok and Forever 21, was reportedly considering to make a bid for Ted Baker.
The retailer’s decision to reject Sycamore’s prior proposals had “represented a nod of confidence in the future,” according to Sophie Lund-Yates, equity analyst for Hargreaves Lansdown.
She added: “But ultimately, everything has a price, and with multiple suitors in the wings the doors have been opened to anyone willing to make a serious offer to buy the group.”
Investors could be reassured by the company’s attitude to be in “no rush” to sell the firm unless there was significant value for shareholders, Lund-Yates added.