Better Capital-backed Jaeger enters administration

A statement released by administrators AlixPartners mentioned the firm was appointed by the company's directors after an "extensive sales process" was unable to attract suitable offer.

The development will put at risk the futures of 680 employees across the company's 46 stores, 63 concessions, its London head office and its distribution facility in Kings Lynn.

According to the Guardian, the business has failed to post a profit during Better's five-year holding period. Various media reports also cite sources who say the majority of the company's stores are expected to close as a result of the process.

Earlier in April, Better sold Jaeger's debts to Edinburgh Woollen Mill (EWM) for £7m, according to a report in The Sunday Times. Jaeger's brand is reportedly expected to be revived by EWM, which is expected to bid to take the company out of administration.

Previous funding
Better acquired a majority stake in Jaeger in April 2012 for £19.5m, with funding drawn from a special purpose vehicle owned by BECAP12 Fund LP. It also committed a further £20.5m of additional investment at the time.

Two years later, the GP injected a further £7.5m into Jaeger in order to support investment in new outlets, the improvement of existing sites and the enhancement of its online operations.

According to publicly available documents, the company then received a further £10m of funding from Better during the financial year ending in February 2016.

Company
London-headquartered Jaeger is a high-end fashion retailer founded in 1884. The group comprises the Jaeger, Jaeger Shops, Jaeger Company’s Shops and The Jaeger Co brands.

People
Better Capital - Jon Moulton (founder).

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