Britain's Ted Baker Looks to Sell Itself after Takeover Interest

People shelter under umbrellas as they pass a Ted Baker a store in London, Britain October 06, 2015. REUTERS/Neil Hall
People shelter under umbrellas as they pass a Ted Baker a store in London, Britain October 06, 2015. REUTERS/Neil Hall
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Britain's Ted Baker Looks to Sell Itself after Takeover Interest

People shelter under umbrellas as they pass a Ted Baker a store in London, Britain October 06, 2015. REUTERS/Neil Hall
People shelter under umbrellas as they pass a Ted Baker a store in London, Britain October 06, 2015. REUTERS/Neil Hall

Ted Baker is open to selling itself at the right price after seeing a flurry of takeover interest, the British fashion retailer said on Monday in the wake of a robust rebound from the pandemic.

Ted Baker launched a formal sale process after private equity firm Sycamore improved its takeover proposal and another third party showed interest in bidding for the company, sending its shares surging as much as 11% to 142.6 pence.

Takeover interest in British companies, ranging from defense groups to supermarkets, is at its highest in years, as the pandemic and uncertainties linked to Brexit have slashed valuations.

"The Board has decided to conduct an orderly process to establish whether there is a bidder prepared to offer a value that the Board considers attractive relative to the standalone prospects of Ted Baker as a listed company," it said in a statement.

The company, which has 560 stores and concessions, is in the middle of a three-year turnaround plan under chief executive Rachel Osborne and has seen demand return from pandemic lows.

Last week, it rejected a second proposal from New York-based Sycamore that valued it at 253.8 million pounds ($332.86 million), saying it undervalued the group.

Ted Baker said Sycamore had made a third proposal, but didn't disclose the terms in its announcement on Monday.

It has not spoken with Sycamore as to whether the private equity firm wishes to participate in the sale, Ted Baker said.

Sycamore did not immediately respond to a Reuters' request for comment.

The formal sale process, which the UK's takeover regulator has agreed to, allows talks with interested bidders to take place on a confidential basis.

Ted Baker over the years has been working to regain investors' trust after former CEO Ray Kelvin left in 2019 following misconduct allegations. He has denied the allegations and still owns nearly 12% of the company he founded in 1988 in Glasgow, Scotland.



Shein Hit with Complaint from EU Consumer Group over 'Dark Patterns'

(FILES) A photo taken on April 16, 2025 shows the Chinese e-commerce company Shein app logo on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP)
(FILES) A photo taken on April 16, 2025 shows the Chinese e-commerce company Shein app logo on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP)
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Shein Hit with Complaint from EU Consumer Group over 'Dark Patterns'

(FILES) A photo taken on April 16, 2025 shows the Chinese e-commerce company Shein app logo on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP)
(FILES) A photo taken on April 16, 2025 shows the Chinese e-commerce company Shein app logo on a smartphone screen in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / AFP)

Pan-European consumers organization BEUC filed a complaint with the European Commission on Thursday against online fast-fashion retailer Shein over its use of "dark patterns", tactics designed to make people buy more on its app and website.

Pop-ups urging customers not to leave the app or risk losing promotions, countdown timers that create time pressure to complete a purchase, and the infinite scroll on its app are among the methods Shein uses that could be considered "aggressive commercial practices", BEUC said in a report also published on Thursday.

The BEUC also detailed Shein's use of frequent notifications, with one phone receiving 12 notifications from the app in a single day, Reuters reported.

"For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption," Agustin Reyna, director general of BEUC, said in an interview.

"For us, to be satisfactory they need to get rid of these dark patterns, but the question is whether they will have enough incentive to do so, knowing the potential impact it can have on the volume of purchases."

In a statement, Shein said: "We are already working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations." It added that the BEUC had not accepted its request for a meeting.

Shein and rival online discount platform Temu have surged in popularity in Europe, partly helped by apps that encourage shoppers to engage with games and stand to win discounts and free products.

The BEUC has also previously targeted Temu in a complaint.

Shein's use of gamification, drawing shoppers to use the app regularly, has helped drive its success.

In the "Puppy Keep" game on the app, users feed a virtual dog and collect points to win free items. They can gain more points by scrolling through the app, and by ordering items, but must log into the game every day or risk losing cumulative rewards.

The BEUC noted that dark patterns are widely used by mass-market clothing retailers and called on the consumer protection network to include other retailers in its investigation.

It said 25 of its member organizations in 21 countries, including France, Germany and Spain, joined in the grievance filed with the Commission and with the European consumer protection network.

Late last month, the European Commission notified Shein of practices breaching EU consumer law and warned it would face fines if it failed to address the concerns.

The company is also under scrutiny from EU tech regulators on how it complies with EU online content rules.