The chain’s administrators and Ted Baker’s biggest creditor are at odds over allegations of conflict of interest.
Because Teneo is owned by the same private equity group that holds a part in Ted Baker owner Authentic Brands, Secure Trust Bank, the retailer’s primary lender, made an attempt to replace Teneo as administrators, according to The Times.
It is known that Teneo might be more inclined to operate in CVC’s interests than creditors, which is why Secure Trust was worried.
The bank attempted to replace Teneo—a restructuring firm that was chosen in March by Ted Baker’s independent director—with FRP Advisory.
A judge did, however, decide that Teneo should continue serving as administrators. A person close to CVC refuted allegations of a conflict of interest and stated that independent teams managed each of the companies in its portfolio.
Ted Baker owes 612 unsecured creditors, who are unlikely to receive their money back, about £60 million, according to documents Teneo filed this week. Administrators stated that payment of the £15.6 million outstanding to Secure Trust is anticipated.
