Ted Baker’s preferred bidder has pulled out of takeover talks, sending shares in the fashion retailer tumbling in early trading.
The company, which put itself up for sale in April, said last month that it had selected a preferred bidder and due diligence was underway.
But on Tuesday, Ted Baker said it been informed last night that the counterparty no longer intended to proceed with an offer. No reason was given, although Ted Baker said it was not linked to its due diligence review.
The company said it had previously received a number of other non-binding proposals and would now decide whether to proceed with any of those.
But it acknowledged: “There can be no certainty that an offer will be made, not as to the terms on which any offer will be made.”
As at 0815 BST, the shares had dived 21% to 108.6p.
Ted Baker had not named the preferred bidder, but it was widely reported to be Authentic Brands, the owner of Juicy Couture and Reebok.