Ads
Published
Jun 14, 2017
Reading time
2 minutes
Download
Download the article
Print
Text size

Angry Jaeger suppliers call for probe into collapse as they get back virtually nothing

Published
Jun 14, 2017


Jaeger's collapse has left some global suppliers out of pocket - DR



Those suppliers include clothing manufacturers from a number of different countries who come under the ‘unsecured creditors’ banner and therefore are at the back of the queue when it comes to getting their money back.

But the creditors are unlikely to take the situation lying down with César Araújo of Portugal’s giant Calvelex Group leading a group calling for an independent investigation into the circumstances around the collapse.

His firm is owed at least a six-figure sum and he had been among a group of suppliers who had a plan to rescue the firm before it was found that the rights to the Jaeger name had been sold to a holding company controlled by Philip Day.

While there is no suggestion that Day has done anything wrong, the creditor group is unhappy about UK insolvency rules and a report in The Times said that some of them are buying shares in the previous owner, Jon Moulton’s private equity group Better Capital, in order to attend its AGM in September and ask questions about Jaeger’s failure.

Alix Partners, the specialist firm called in when Jaeger filed for administration has filed a report showing that the creditors are owed money by four separate trading companies that made up the classic women’s and men’s fashion chain.

One of those trading companies, Jaeger Company’s Shops Limited, was the primary trading unit and its creditors are owed almost £30 million. They should get back less than 2% of what they are owed.

Meanwhile Jaeger Company Ltd, which was responsible for buying the inventory sold through Jaeger’s physical stores and its e-store, are likely to recover none of the £11.5 million that is due.

Copyright © 2024 FashionNetwork.com All rights reserved.