UK fashion retailer Jaeger to close 20 stores
British fashion chain Jaeger, which had moved into administration this month, is set to close 20 stores and cut more than 200 jobs.
The decision has been made by the retailer’s appointed administrators AlixPartners, which is said to be in line with their cost-saving strategy, as reported by Sky News.
As per several reports in the UK media, 209 employees will be impacted by the decisions out of which 165 are from the stores that will be closed.
The remaining will be the employees working in Jaeger’s head office and distribution center.
A statement released by AlixPartners in this regard read: "Following consultation with all appropriate stakeholders it has become apparent that the operating costs of a number of stores are financially unviable given the company's difficulties.
"As a result, the joint administrators have made the difficult but necessary decision to commence a programme of store closures.”
AlixPartners has confirmed that the affected employees at the closed stores will be compensated for the duration of the process.
A total of around 700 jobs across the fashion chain have been at risk after Better Capital, the owner of Jaeger failed to find a suitable buyer.
Since then, Peter Saville, Catherine Williamson and Ryan Grant, the joint administrators at AlixPartners have been roped in to manage the ailing business of Jaeger after it was unsuccessful in drawing buyers.
Founded in 1884, Jaeger was acquired by Better Capital, a private equity firm in 2012 for £19.5m, as per a report on The Guardian. It was eventually put up for sale for £30m with the fashion retailer not able to turn things around in terms of sales and revenue.
As of today, the fashion retailer has operations across 46 stores and 63 concessions. While its head office is in London, its logistics centre is in the King’s Lynn seaport at Norfolk.
Image: Jaeger will close 20 fashion retail stores. Photo: courtesy of Photo: Courtesy of franky242/FreeDigitalPhotos.net.