EDINBURGH Woollen Mill (EWM) has emerged as the favourite in the race to acquire Jaeger, the struggling fashion chain.

The Langholm-based company, run by retail mogul Philip Day, has been cited in reports as the front runner for the group, which has struggled amid tough conditions on the high street.

Mike Ashley, the Sports Direct supremo who has stakes in retailers such as French Connection and Agent Provocateur, has also been linked, alongside former owner Harold Tillman. Entrepreneur Tillman was first credited with being interested in buying back Jager earlier this month when it emerged that owner Better Capital had appointed AlixPartners to scout for potential buyers.

But EWM, which has rejuvenated chains such as Peacocks, Jane Norman and Austin Reed after buying them out of administration, is understood to be in the driving seat.

The firm declined to comment, but a source said: “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.”

Private equity outfit Better Capital had acquired Jaegar for £19.5 million in 2012 but is believed to value the company at £30m. Jaeger, founded in 1884, has 25 standalone stores and concessions within retailers such as John Lewis and House of Fraser.