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Out-of-pocket Jaeger suppliers invited to join committee

Jaeger’s administrators have agreed to create an informal consultative committee to keep dialogue with the firm’s unsecured creditors open.

It comes after a consortium of former Jaeger suppliers, led by Portuguese textile group Calvelex, attempted to buy the retailer in late April with a view to trading it as an going concern.

The suppliers have been demanding answers after discovering that the Jaeger trademark and intellectual property rights had been acquired by a company called KLL – operating on behalf of Edinburgh Woollen Mill Group – days before it collapsed into administration on 10 April. 

Following Jaeger’s collapse, the unsecured creditors are owed £29.9m. They are likely to receive less than 2p in the pound, the most recent administrator’s report indicates.

The decision to form the committee follows a meeting for unsecured creditors on 30 June. AlixPartners, confirmed the formation of the committee, but declined to comment further on the talks. 

The administrator’s report, published last month, revealed that KLL 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 to be included in the deal, with a price tag of £3m.

Two other offers were received but Better Capital decided that the offer from KLL represented the best return. The debt and Jaeger’s intellectual property was subsequently sold on 30 March. 

In the report, the 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.

 

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