Jaeger creditors who claim they are owed millions from the collapse of the heritage brand have bought shares in former owner Better Capital.
By becoming shareholders in the private equity outfit, the group of creditors, led by César Araújo of Portuguese textile company Calvelex, will be able to grill its directors at its next AGM.
The group is also taking legal advice and calling for an investigation into the circumstances surrounding Jaeger’s collapse into administration and its subsequent sale to Philip Day’s EWM group.
The creditors want to know why Better Capital sold the Jaeger brand name before appointing administrators Alix Partners, who tried to offload the retailer as a going concern.
It claims that because the majority of Jaeger’s value was tied up in its brand equity, the administrators were not in a position to offer the business as a going concern.
The group believes that the sale was not overseen by the Pre Pack Pool, which reviews proposed pre-pack administration sales.
It also questions why Alix Partners were appointed as administrators.
In a statement it said: “Before their appointment as administrators, [Alix Partners] advised Better Capital on the disposal of the business and reported that they were involved in the sale of the Jaeger debt and trademarks to Edinburgh Woollen Mill.
“They also acted as administrators of the Austin Reed retail chain in 2016, which business was also sold to Edinburgh Woollen Mill.”
Neither Alix Partners nor Better Capital responded to requests for comment.