More than 200 jobs at Jaeger to be axed as administrators begin closing stores
More than 200 jobs at Jaeger are to be axed as administrators to the stricken fashion chain begin the process of closing twenty stores.
Last week AlixPartners was appointed to oversee the administration process following failed attempts by the company's private equity owner, Better Capital, to sell the struggling retailer.
On Tuesday AlixPartners said that it has earmarked twenty "financially unviable" stores to close down, employing a total of 165 people.
"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. We can confirm that all employees at these stores will be paid for the duration of the process," the firm said.
In addition to the store closures, 44 people will be made redundant at Jaeger's head office and distribution function, impacting 32 and 12 staff respectively.
Prior to its collapse, Jaeger employed 680 staff across 46 stores, 63 concessions, its London head office and a logistics centre.
Better Capital has sold Jaeger's debt to a company understood to be controlled by the retail billionaire Philip Day, who heads up Edinburgh Woollen Mill.
Insiders expect all of Jaeger's stores to eventually close down, although the brand is likely to survive as part of the Edinburgh Woollen Mill stable, which also includes Jane Norman, Peacocks and Austin Reed.
Gift cards continue to be honoured at Jaeger stores, AlixPartners added.
:: Full list of store closures
Store Number of staff
Canary Wharf x 2 12
Cheshire Oaks 13
Stratford upon Avon 6