This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-39557933
The article has changed 4 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Jaeger clothing chain collapses into administration | |
(35 minutes later) | |
The fashion chain Jaeger has gone into administration, putting 700 jobs at risk in the UK. | |
The British retailer's directors appointed administrators after failing to find a suitable buyer for the struggling clothes business. | |
Jaeger has 46 stores, 63 concessions, a head office in London and a logistics centre in King's Lynn. | Jaeger has 46 stores, 63 concessions, a head office in London and a logistics centre in King's Lynn. |
The firm has suffered from intense competition on the High Street and falling sales. | |
Jaeger, which was founded in 1884, has counted actresses, royalty and Arctic explorers among its fans. | Jaeger, which was founded in 1884, has counted actresses, royalty and Arctic explorers among its fans. |
However, it has struggled to keep up with rivals such as Burberry or see off competition from fast-fashion chains including Zara and H&M. | However, it has struggled to keep up with rivals such as Burberry or see off competition from fast-fashion chains including Zara and H&M. |
It was acquired by private equity firm Better Capital in 2012, but was put up for sale for about £30m after struggling to boost sales. | It was acquired by private equity firm Better Capital in 2012, but was put up for sale for about £30m after struggling to boost sales. |
Peter Saville, the joint administrator, said: "Regrettably despite an extensive sales process it has not been possible to identify a purchaser for the business. | Peter Saville, the joint administrator, said: "Regrettably despite an extensive sales process it has not been possible to identify a purchaser for the business. |
"Our focus now is in identifying an appropriate route forward and [to] work with all stakeholders to do this." | |
Reports had suggested that the clothing retailer Edinburgh Woollen Mill was interested in the business. | |
The Scottish firm, which owns Jane Norman and Peacocks, bought some parts of the menswear retailer Austin Reed when it closed last year. | |
Heavy discounting | |
Jaeger's problems are partly because it has "struggled for years to truly understand its core clientele", according to analysts at retail consultancy Kantar Worldpanel. | |
Glen Tooke at Kantar said the firm also relied too heavily on special offers, estimating that discounts accounted for over three quarters of Jaeger's sales. | |
"This constant stream of sales and offers has discouraged shoppers from paying full price and has lessened their trust in the quality of the Jaeger product - one of its fundamental selling points," he said. | |
Last year the firm said its annual sales fell 4% to £78m, while it reported a pre-tax loss of £17m. | |
Jaeger started by selling woollen long johns and its clothes were worn by the explorer Ernest Shackleton on an Antarctic expedition. | |
In the 1950s and 1960s its celebrity fans included the actress Marilyn Monroe and the model Twiggy, before more recently being worn by the Duchess of Cambridge. |