LONDON — AlixPartners Services, the global consultancy firm appointed as the administrator of the British heritage label Jaeger earlier this month, has announced plans to start a program of store closures.
Following a consultation process with all company stakeholders, the administrators decided on proceeding with a series of store closures in order to reduce operating costs.
A total of 20 stores will be closed, the majority of which are based outside London in locations such as Stratford-upon-Avon, Windsor, Cambridge, Oxford, Guildford and Chester. Two locations in Canary Wharf, a major business district located in East London, are also set for closure.
A total of 165 jobs will be affected from the planned store closures.
“It has become apparent that the operating costs of a number of stores are financially unviable given the companies’ 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,” said a spokesperson at AlixPartners.
The company also confirmed that a total of 44 redundancies will take place in Jaeger’s head office and distribution function, a decision they described as “difficult but commercially necessary.”
The struggling retailer filed its intent to appoint administrators earlier this month, after its owner, the private equity firm Private Capital, sold Jaeger’s debt for seven million pounds, or $8.7 million. The sale left Private Capital with a 62 million pound, or $77 million, loss.
Edinburgh Woollen Mill is said to have bought the debt from the private equity firm and was among the top contestants to buy the retailer out of administration.
Having failed to find a suitable buyer, Jaeger confirmed the appointment of AlixPartners’ Peter Saville, Ryan Grant and Catherine Williamson as joint administrators last Monday.
One of the label’s ongoing struggles has been the disconnect between the modern, updated image it tried to portray and its core clientele, which continued to be women in their 40s, 50s and 60s.
As the market became increasingly globalized, Jaeger failed to keep up with new competition and joined a series of other British high street labels, such as Austin Reed and BHS, falling into administration.