EDINBURGH Woollen Mill, the retail group run by the billionaire Philip Day, has emerged as the front runner to acquire struggling high street chain Jaeger.
It is understood that Day’s outfit, which owns an array of high street brands, is slugging it out with a group of bidders also thought to include Mike Ashley’s Sports Direct and Jaeger’s former owner Harold Tillman.
Sources close to the deal believe that Edinburgh Woollen Mill is in pole position to buy the group from its current owner, the private equity firm Better Capital.
“Edinburgh Woollen Mill has a history of buying troubled retailers and turning them around, and it’s one of the more credible bidders for Jaeger,” one source said.
Day’s group has snaffled Jane Norman, Peacocks and Austin Reed out of administration over the past few years.
Jaeger is valued at £30 million by Better Capital, which is headed up by private equity baron Jon Moulton.
Better Capital acquired Jaeger for £19.5 million in 2012, but the firm has struggled under difficult conditions for high street fashion retailers.
Last year the firm said that total annual sales fell from £84.2 million to £78.4 million, while it booked a pre-tax loss of £5.4 million, according to accounts filed at Companies House.
Better Capital has enlisted the services of AlixPartners to sound out potential buyers.
Jaeger, which has around 25 standalone stores, was founded in 1884 by businessman Lewis Tomalin.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here