Fashion chain Jaeger collapses into administration, 700 high street jobs at risk
11 Apr 2017
The collapse of the fashion chain Jaeger into administration yesterday had put 700 high street jobs at risk. AlixPartners had been appointed by directors of the company to exercise oversight of the process after the company's private equity owner, Better Capital failed to sell the struggling business.
Jaeger, with 680 staff, 46 stores, 63 concessions, London head office and a logistics centre in Kings Lynn, had been on the market for around £30 million.
However, with no buyer evincing interest, Better Capial last week sold Jaeger's debt to a company which would be controlled by retail billionaire Philip Day, who headed Edinburgh Woollen Mill.
The company was founded by businessman Lewis Tomalin as Dr Jaeger's Woollen System Co Ltd. Jaeger claims its clothes had been worn by famous figures from explorer Ernest Shackleton to Marilyn Monroe.
Most of Jaeger's stores are now expected to close down. However, the brand was likely to survive as part of the Edinburgh Woollen Mill stable, which also included Jane Norman, Peacocks and Austin Reed.
Joint administrator Peter Saville, of AlixPartners, said: "Regrettably despite an extensive sales process it has not been possible to identify a purchaser for the business, The Independent reported. Our focus now is on identifying an appropriate route forward and work with all stakeholders to do this. We will ensure that we communicate further as this process unfolds."
Jaeger had struggled to keep up with rivals, including Burberry, and fight competition from fast-fashion chains such as Zara and H&M.
Peter Saville, the joint administrator, said: "Regrettably despite an extensive sales process, it has not been possible to identify a purchaser for the business, BBC reported.
"Our focus now is in identifying an appropriate route forward and [to] work with all stakeholders to do this."
Jaeger's problems are partly because it has "struggled for years to truly understand its core clientele", according to analysts at retail consultancy Kantar Worldpanel, BBC reported.