Jaeger’s unsecured creditors, including suppliers, are likely to receive less than 2p in the pound, new documents have revealed.
AlixPartners’ administrator’s report, published on Companies House today, shows that unsecured creditors are owed £29.9m.
Several creditors are owed hundreds of thousands of pounds: Luis Brito Textiles in Portugal is owed £762,703; Cavelex, also based in Portugal, is owed £541,391; Berwin & Berwin is owed £199,044; and Zyga International Diffusion in Paris is owed £1m.
Preferential creditors are the 113 employees who were made redundant following Jaeger’s collapse. Former employees will be reimbursed in full for unpaid wages and accrued holiday pay totalling £51,565.
The documents revealed that, on 17 February, AlixPartners was engaged by Jaeger to start the sale process for the whole business and three offers were received. KLL (Kings Landing Ltd) – operating on behalf of Edinburgh Woollen Mill Group – offered to buy the loan notes and security held by Jaeger’s former owner, Better Capital, for an undisclosed amount. Jaeger’s intellectual property was also to be bought for £3m as part of the deal.
An offer from a third party for assets including stock and leaseholds for £10m was also made. A third offer for stock and management stock liquidation for £9m was also received.
As previously revealed by Drapers, Better Capital decided that the offer from KLL presented the best return and the debt, and Jaeger intellectual property was sold on 30 March.
Directors were not able to agree terms for the provision of new funding and on 10 April administrators Peter Saville, Ryan Grant, and Catherine Williamson of AlixPartners were appointed.
Administrators said they were investigating the transaction between Better Capital and KLL and the conduct of the directors before the company went into administration, adding that further steps may need to be taken. Further details will be provided in the next administrators’ report.
Earlier this week a group of suppliers – led by César Araújo, owner of Calvelex – claimed they have bought shares in Better Capital in order to question shareholders about the failure of Jaeger.
The suppliers are calling for an independent review into the sale of the Jaeger trademark and the subsequent administration of the chain, and have formally requested a creditors meeting with administrators.