- Angela Gonzalez-Rodriguez |
Jaeger’s owner’s CEO, Jon Moulton from Better Capital, has confirmed the struggling fashion brand is up for sale. In a recent interview, private equity veteran Moulton said that a sale "process is under way" with "a considerable number" of buyers having approached him already.
In an interview with ‘City A.M.’ earlier this year, Moulton blamed the heavy discounting witnessed on the high street for the sector’s troubles.
As a result, the private equity firm – which acquired a majority stake in the centenary retailer for 19.5 million pounds in 2012, hired AlixPartners to advise over the sale of the fashion business.
“Everyone seems to be offering clothes at minus 70 percent and that really is a nuisance because it destroys the image of your brand, it is hurting lots of retailers. Even Burberry is not having an easy time,” commented Moulton the current state of the high street.
In his interview with the London newspaper, Moulton ruled out suggestions of the brand collapsing into administration: “We don’t see it going into administration otherwise we wouldn’t be sitting here. From reducing prices of the clothes to shutting shops, we’ve considered all the options you could imagine,” he said.
Looking ahead, it seems that the company might go through a déjà vu as Harold Tillman, who was formerly head of Jaeger and Aquascutum, is reportedly interested in buying up the brand.
The ‘Sunday Telegraph’ reported over the weekend that Tillman is willing to make another attempt at Jaeger in a renewed effort to buy back the retail chain five years after losing control of the business.
A source close to Better Capital revealed first round bids are due in the next couple of weeks, and there has been interest from several parties, reported the ‘Sunday Times’. Sources close to the matter pointed out to the paper that the private equity firm has written down the value of its investment in the chain to around 30 million pounds.