UK fashion chain Jaeger has collapsed into administration which has put 680 jobs at risk. AlixPartners has been appointed as administrator for a suggested price of Pound 30 million after Better Capital, owner of Jaeger had been unable to find a buyer.
Alix said Jaeger would continue trading, further adding, “Our focus now is in identifying an appropriate route forward and work with all stakeholders to do this. We will ensure that we communicate further as this process unfolds.”
The fashion brand runs 46 stores and a head office in London, UK and was bought by Better Capital for Pound 19.5 million in 2012. However, the company has been unsuccessful to generate a profit since then.
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Jaeger is another prey that has fallen in the trap of administration and failed to compete with the online retailing growth and changing consumer purchasing habits.
Andy Brian, Head of Retail at Gordons law firm said, “Jaeger has relied on its concession model but it’s clear that having a bricks and mortar presence on the high street – even in this cost-effective way – is no longer enough. Online shopping is growing faster than ever and retailers must keep up, otherwise they will no longer be able to compete. Jaeger are not the only chain to have struggled with this shift – and we can expect more famous retail brands to go into administration this year for the same reasons.”
