Ted Baker PLC (LON:TED) has signed up Next PLC (LON:NXT) to make its range of children’s clothing, which will be sold through both companies’ retail channels.
The new five-year licence will begin next February, when the existing relationship with Debenhams comes to an end, with the collection launched in the spring.
Next has worked with Ted Baker for a number of years as one of the brands in its Label range, with chief executive Simon Wolfson saying “we recognise the power of their brand”.
Ted Baker, which will design the range of baby, boys’ and girls’ clothing and shoes, said there was unlikely to be a material financial impact from this agreement this year or next.
“As a multi-channel retailer with global capabilities and wholesale experience, Next is the outstanding partner to take Ted Baker forward in this category, which we believe will deliver significant growth in the coming years,” said chief executive Lindsay Page, who was appointed last year in the wake Lindsay of the “forced hugging” row involving former boss Ray Kelvin.
He said that product licensing had been a highly successful pillar of the FTSE 250 company’s strategy to expand as a ‘global lifestyle brand’.
“It enables us to carefully develop the brand in new, relevant categories by leveraging the specialist product expertise of our carefully selected partners.”
Debenhams will continue its existing partnership in lingerie and nightwear.