- 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 a vehicle called King’s Landing Limited for £9.2 million 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 said 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.”
The trademark was subsequently sold by King’s Landing Limited to Philip Day, who owns the chain Edinburgh Woollen Mill and purchased Jaeger in June.
Alix Partners also said in its progress report written earlier this month that it estimates Jaeger has debts of £82.7 million. 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. Alix warns that the prospect of paying off the remaining debt to King’s Landing Limited is “uncertain” and they expect a “significant shortfall.”
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.