Marks & Spencer has acquired the upscale fashion brand Jaeger out of administration.
Terms of the transaction for the intellectual property assets were not disclosed, but U.K.’s Evening Standard has estimated the purchase price to be in the neighborhood of 5 million pounds ($6.8 million). Since M&S is buying only the IP, the Jaeger stores shut due to lockdown restrictions in the U.K. will likely stay closed as they have been since the brand collapsed into administration in November. Staff who worked at the company will likely lose their jobs as well. About 63 stores and concessions were left after the closure of 13 locations once Jaeger entered into administration. The company had nearly 250 employees on its payroll.
Jaeger and sister company value-chain Peacocks both fell into administration in November. The brands were part of the retail empire of Sir Philip Day. His Edinburgh Woolen Mill Group already saw the collapse into administration of Edinburgh Woolen Mill and the Ponden Home business near the start of November. The expectation is that M&S will sell the Jaeger brand on its website, but probably not open standalone stores.
“We have set out our plans to sell complementary third-party brands as part of our Never The Same Again programme to accelerate our transformation and turbocharge online growth,” Richard Price, head of the M&S clothing and home division, told Sky News on Monday. “In line with this, we have bought the Jaeger brand and are in the final stages of agreeing the purchase of product and supporting marketing assets from the administrators of Jaeger Retail Limited. We expect to fully complete later this month.”
M&S last week provided an update on third quarter sales, noting that although apparel sales were down, sleepwear and leisure apparel were standouts during the November and December holiday period.