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Jaeger to permanently close 63 stores and concessions after M&S deal

NEWCASTLE-UNDER-LYME, ENGLAND - NOVEMBER 20: A man walks past a branch of Peacocks clothing store on November 20, 2020 in Newcastle-Under-Lyme, England. The chain is among a number of businesses to announce their closure, blaming the inability to survive the financial impact of national lockdowns and social restrictions. (Photo by Nathan Stirk/Getty Images)
Marks & Spencer finalised a deal for the retailer's stock and marketing assets for an disclosed sum on Monday, however Jaeger’s high street outlets were not part of the deal. Photo: Nathan Stirk/Getty Images

Jaeger is set to permanently close 63 of its stores and concessions, putting hundreds of people out of work.

It comes after Marks & Spencer (MKS.L) finalised a deal for the retailer's stock and marketing assets for an disclosed sum on Monday, however Jaeger’s high street outlets were not part of the deal.

The move will make 211 shop staff and 21 head office workers redundant, administrators at FRP Advisory confirmed. The majority of these employees have up until now been furloughed.

13 stores had already closed after administrators were initially appointed, with the loss of more than 120 jobs across shops, head office and distribution.

Six head office staff and seven warehouse staff have been retained by the administrators to assist them in their duties, FRP said.

Tony Wright, joint administrator of Jaeger Retail Limited and partner at FRP, said: “The transaction with M&S provides a future for this well-known brand and, in competition with a number of bids, has provided the best outcome for creditors.

“Unfortunately, we will now progress with the permanent closure of the remaining store portfolio and work with the affected staff to access redundancy payment and support.”

Jaeger was first placed into administration, along with its sister firm Peacocks, in November last year by Dubai-based owner and retailer Philip Day.

The retail tycoon’s Edinburgh Woollen Mill (EWM) Group suffered from the impact of the coronavirus pandemic.

Watch: 4,700 jobs at risk as Peacocks and Jaeger go into administration

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In May, M&S announced that it planned to stock other complementary brands in a bid to bolster sales. It has since launched partnerships with eco-conscious fashion brand Nobody's Child and vintage-style brand Ghost London.

Earlier this week, Richard Price, managing director of M&S clothing & home, said: “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.”

“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.”

M&S is also thought to be in the running for some of Sir Philip Green’s collapsed Arcadia Group brands, such as Topshop, Burton, Evans and Miss Selfridge.

Arcadia also fell into administration in November as the coronavirus pandemic exacerbated declining footfall, rising online competition and increased business rates.

Last year, M&S also made a play to become the UK franchisee of Victoria's Secret but lost out to fashion rival Next (NXT.L).

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