British high-street clothing retailer Ted Baker has confirmed that it has rejected two takeover bid proposals from US-based private equity firm Sycamore Partners Management.

On 18 March, Sycamore offered £1.30 a share for each of Ted Baker’s shares. The fashion chain’s board rejected this offer.

Sycamore increased the offer by 5.8% to £1.38 a share last week, which valued the retailer at £254m ($334m).

In a statement, Ted Baker said: “The Board of Ted Baker notes the recent press speculation and confirms that it has received two unsolicited non-binding proposals from Sycamore Partners Management in relation to a possible cash offer for the entire issued and to be issued ordinary share capital of the company.

“The Board carefully reviewed both of Sycamore’s proposals with its advisers and concluded they significantly undervalued the company and failed to compensate shareholders for the significant upside that can be delivered by Ted Baker as a listed company.

“There can be no certainty that any firm offer for the company will be made, nor as to the terms on which any firm offer might be made.

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“This announcement has been made without the consent of Sycamore. Shareholders are urged to take no action at this time.”

Ted Baker operates a network of 377 stores and concessions, including 97 in the UK and 81 in Europe.

The company also has e-commerce, wholesale and licensing operations.

In November last year, Ted Baker reported an 18% growth in revenue for the third quarter (Q3) of the fiscal year 2022 (FY22).

On 26 May, the company will report its results for the 52 weeks to 29 January and issue its first-quarter (Q1) trading update.

Ted Baker added: “The management actions taken over the last two years have put the business on a firm footing, and it is now well on the way to recovery following a turbulent period.”