Ted Baker has agreed a £211 million takeover by Authentic Brands Group, the US owner of Reebok and Juicy Couture.
Ted Baker's board told shareholders they have recommended a 110p per share deal.
If confirmed, the deal will be worth almost a third less than the 160p per share approach ABG was contemplating in May as potential suitors circled the retail business.
Nevertheless, it represents a significant premium to Ted Baker's current share price, which had slumped since the start of the year.
The retailer, which has nearly 400 locations, launched a formal sale process in April after US private equity firm Sycamore made a series of approaches for the brand and following interest from a number of other interested buyers.
Ted Baker, which was founded as a shirt specialist in Glasgow in 1988, selected a preferred bidder but saw its shares drop after the unnamed frontrunner bowed out in June.
Helena Feltham, interim chairwoman of Ted Baker, said: "In April 2022, after receiving a number of unsolicited bid proposals and having consulted with our major shareholders, the Ted Baker board decided to launch a formal sale process to evaluate interest in the business.
"The process was thorough and attracted global interest.
"Today, we are announcing an all-cash offer from ABG.
"The Ted Baker board believes the offer, which is supported by Ted Baker shareholders with a majority of shares, represents a fair value for shareholders and balances the company's growth prospects with the risks of the uncertain economic environment in which the business is operating."
Shares sat at 17.08% up in afternoon trading.
Workers face record pay slump in face of rocketing inflation
WORKERS have suffered a record real-term pay drop as prices soar, new figures have confirmed.
When inflation is taken into account, regular wages plunged an average of 4.1% on the year in the three months to June, the Office for National Statistics (ONS) revealed.
How our creative tech sector could be on track to take centre stage
SCOTLAND'S creative technology companies are playing on a global stage, thanks to a national tech boom and increasing demand for innovation in feature films and games.
The ongoing Scottish tech boom has seen job openings in Glasgow and Edinburgh increase by more than a quarter in the past two years, demonstrating some of the highest growth in tech in the UK and employing more than 100,000 people.
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