- Fashion brand Jaeger collapsed in April.
- Administrators say it owed £82.7 million but most who are owed money will receive just 2p on the pound.
- Administrators have been investigating controversial trademark sale ahead of Jaeger’s collapse, but say the prospect for legal action looks limited.
LONDON — Administrators of bust fashion brand Jaeger say they are unlikely to pursue action against the company’s former owner over a controversial trademark sale.
Better Capital, Jaeger’s former owners, sold the brand’s trademark rights to retail entrepreneur Philip Day shortly before the company’s collapse. A shareholder group attacked the move in May and said they would not rule out court action.
Administrator’s Alix Partners says in its November report that is has been investigating the details of the trademark sale but early finds suggest that it is “not expected that actions can be pursued.”
Alix Partners also said in a progress report written earlier this month that it estimates Jaeger has debts of £82.7 million. Companies owed money by collapsed fashion retailer Jaeger are set to lose tens of millions of pound.
The bulk of its debts — around £49 million — are to unsecured creditors and Alix Partners expects most unsecured creditors to receive just 2p on the pound. That would mean the companies owned this money would share a little under £1 million between them.
£33.3 million is owed to secured creditor King’s Landing Limited, a vehicle owned by Day. Day, who owns Edinburgh Woollen Mill, purchased Jaeger for £9.2 million in June and this will likely affect the total debt.
However, Alix warns that the prospect of paying off the remaining debt to King’s Landing Limited is “uncertain” and they expect a “significant shortfall.”
The collapse and sale of Jaeger have been controversial after it emerged that Jaeger’s former owners,
Jaeger collapsed in April of this year after struggling to find a buyer. Alix Partners say they have so far returned £3.1 million to creditors and made 224 redundancies since being appointed.
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