Ted Baker turns its hand to interior design

By Neil Maidment

LONDON, March 10 (Reuters) - Not content with producing quirky jackets or floral cut dresses, British clothing brand Ted Baker has made a move into interior design with 'Ted styled' apartments.

The firm said on Tuesday it had signed a deal with property group THAT BCL, majority owned by Ted Baker's founder and CEO Ray Kelvin, to provide a trade mark licence and design services for the development of apartments in Bournemouth, southwest England, in return for a 250,000 pound ($377,000) fee.

Under the agreement Ted Baker will craft the interior of 15 luxury penthouse apartments in a development anchored by two Hilton Hotels in the seaside town. Rooms could be kitted out with furniture designed by Ted Baker or selected by the firm.

Ted Baker's finance chief Lindsay Page is also a shareholder and director of THAT BCL, which focuses on mixed-use city centre projects in the south of England. Kelvin, who owns almost 36 percent of Ted Baker, is THAT BCL's principal equity provider.

Ted Baker has enjoyed a strong period of sales growth both in Britain and overseas where it has ramped up expansion in recent years. The firm often tests new areas of business, with audio equipment and crockery two of its more recent productions.

Shares (Berlin: DI6.BE - news) in Ted Baker are up 22 percent on a year ago to 2,593 pence, valuing the business at around 1.1 billion pounds.

($1 = 0.6631 pounds) (Editing by Mark Potter)