Ted Baker at the Woodbury Common Premium Outlets in Central Valley, New York
The Ted Baker logo is seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022.

Juicy Couture and Forever 21 owner Authentic Brands (ABG) has agreed to buy Ted Baker in a deal worth roughly 211 million pounds ($254 million), ending months of speculation over the fate of the British fashion group.

Pandemic-related losses forced Ted Baker to put itself up for sale in April and the company picked a preferred suitor the following month. However, the bidder - reported to have been ABG - in June decided not to make an offer, forcing Ted Baker to consider other options.

Ted Baker has now reached an agreement with U.S.-based ABG, whose brands also include Reebok, consisting of 110 pence cash for each Ted Baker share, and which represents a premium of about 18.2% to Monday's closing price.

The companies said the deal would not be revised unless a rival suitor emerges.

"ABG believes there are significant growth opportunities for the Ted Baker brand in North America given (its) ... strong consumer recognition in this market," the New York-listed company said in a statement on Tuesday.

Known for its suits, shirts and dresses with quirky details, Ted Baker is in the midst of a turnaround plan and is looking to benefit from a rebound in demand for office and leisure wear.

In May it posted a smaller annual loss of 38.4 million pounds and said sales in the first quarter of the current year had risen 20% year-on-year.

Ted Baker had also rejected several bids from private-equity group Sycamore before launching its sale process, and Tuesday's move is the latest in a flurry of deals for British companies, made more affordable to overseas buyers by the weakness of the pound.

Ted Baker's shares were up about 17% at 108p in early trading, just shy of the offer price and still well short of their peak in 2015 when they were trading at 2,972p apiece.

($1 = 0.8299 pounds)