Jaeger’s administrators have swung the axe on the collapsed retailer’s “financially unviable” stores in a move that will result in more than 200 job losses.
Alix Partners, which was drafted in to handle the process a week ago, said it had come to the “difficult but necessary decision” to shutter 20 stores across the UK just a week after it plunged into administration.
The decision will impact 219 store jobs, while a further 44 redundancies are being made across Jaeger’s head office and distribution.
Jaeger’s shops in Bluewater, Canary Wharf, Oxford, Guildford and Edinburgh are among those that will close. The retailer’s remaining 26 branches continue to operate as normal.
Alix Partners said that all employees at the affected stores would be paid for the duration of the closing down process.
All gift cards will continue to be honoured at Jaeger stores.
AlixPartners joint administrators Peter Saville, Ryan Grant, and Catherine Williamson said in a statement: “Following consultation with all appropriate stakeholders it has become apparent that the operating costs of a number of stores are financially unviable given the companies’ difficulties.
“As a result, the joint administrators have made the difficult but necessary decision to commence a programme of store closures.”
The statement added: “In addition to the store closures the administrators have had to take a similarly difficult but commercially necessary decision to make a total of forty-four redundancies in Jaeger’s head office and distribution function, impacting 32 and 12 members of staff respectively.
“We appreciate that this is a particularly unsettling time for all concerned and would like to go on record to express thanks for the commitment and professionalism shown to date by Jaeger staff.”
As revealed by Retail Week, Jaeger fell into administration last week after owners Better Capital failed to find a buyer for the business.
Alix Partners said the retailer would continue to trade as normal while all options for the future of the chain were evaluated.
Jaeger is the latest in a string of retailers to suffer amid turbulent trading conditions on the high street, as the shift to online shopping, rising labour costs and the tumbling value of the pound following the Brexit vote all continue to bite.
Jones Bootmaker was rescued by Endless in a pre-pack administration deal last month, although its former stablemate Brantano collapsed into administration.
The value shoe retailer’s stores are now likely to be sold off in parcels, with footwear rival Shoe Zone thought to be among those eyeing its shops.
As revealed by Retail Week, 99p Stores also fell into administration in March less than two years after it was acquired by value rival Poundland.