Jaeger has filed notice of intent to appoint administrators at the High Court.
Reports that the clothing brand was close to going under began circulating last month, when private equity veteran and Better Capital boss Jon Moulton confirmed he had put the retailer up for sale. Jaeger's sales dropped from £84.2m to £78.4m in 2016 while it recorded a loss of £5.4m, and last year it closed three stores including its Regent Street flagship.
The collapse of the 133-year old fashion line could put up to 700 jobs at risk.
“Jaeger has struggled for years to truly understand its core clientele," said Glen Tooke, consumer insight director at Kantar Worldpanel.
"London Fashion Week collections and more fashion-forward designs may appeal to younger shoppers, but with 45-54 year olds accounting for a fifth of spend Jaeger’s tendency to overlook them has critically damaged its brand."
Tooke added: “Remarkably, discounting accounts for over three quarters of Jaeger sales. This constant stream of sales and offers has discouraged shoppers from paying full price and has lessened their trust in the quality of the Jaeger product – one of its fundamental selling points. This trend is replicated across the wider market and other retailers will be at risk if they fail to get their discounting levels under control.”
In an interview with City A.M. earlier this year, Jaeger's previous owner Moulton blamed heavy discounting on the high street for the brand’s troubles.
“Everyone seems to be offering clothes at minus 70 per cent and that really is a nuisance because it destroys the image of your brand, it is hurting lots of retailers," he said.
Even Burberry is not having an easy time.