Jaeger creditors to challenge former owner over administration
Creditors of Jaeger are planning a public challenge to the boss of its its former owner, Jon Moulton of Better Capital.
According to The Times, César Araújo of the Portuguese clothing manufacturer Calvelex, is heading up a group of unnamed angry creditors who are buying shares in Better Capital in order that they can attend the private equity house's AGM in September and confront Moulton about the circumstances surrounding the administration of the 133-year-old fashion business.
Jaeger was placed into administration in April and it later emerged that Edinburgh Woollen Mill owner Philip Day had bought its debt and, crucially, its brand prior to the administration. Calvelex had been hoping to launch a rescue bid to save Jaeger and reinstall former owner Harold Tillman who had sold it to Better Capital in 2012. However given the brand had been sold, this was not viable (however it is understood that the proceeds of the sale of the brand went to Jaeger and not Better Capital).
Recently Edinburgh Woollen Mill revealed that the Jaeger brand would be sold in its new chain of department stores, Days, the first of which has been opened in Carmarthen, Wales. Edinburgh Woollen Mill owns a raft of brands including Peacocks, Jane Norman, Country Casuals and Austin Reed, which it bought out of administration last year. Day is also understood to be interested in buying high street chains Coast, Oasis and Warehouse, which are up for sale.
Calevlex's Araújo told The Times: "The creditors are looking for answers about why and how the Jaeger brand names and other trademarks came to be sold only days before the administrators were appointed." He also said the suppliers had called for a meeting with administrators Alix Partners, which would be taking place later this month.