Jaeger’s new owner Better Capital said the premium retailer is showing “promising” early signs after the investment vehicle ploughed £20.5m into its turnaround.

The capital has been used to buy new stock and pay off debt, as well as improve visual merchandising.

Better Capital managing partner Jon Moulton said trading had improved as a result.

“When you buy a company that starts off with stock issues and then you buy new stock, you definitely see an improvement in sales,” he said.

Moulton declined to give exact sales figures.

Better Capital aims to continue to improve visual merchandising and will also look at the retailer’s store portfolio as well as driving its online business.

Better Capital acquired Jaeger for £19.5m in April. It bought a 90% stake, leaving Harold Tillman with the remaining 10%. Tillman was previously the majority shareholder with a 70% stake.

Moulton said the Olympics had confused the overall trading picture because sales at Jaeger’s Regent Street store fell during the Games, while trading at its Westfield Stratford City store improved, boosted by Olympics visitors.

In Better Capital’s latest financial results, it said it had invested in the Jaeger brand through advertising as well as recruiting a number of key managers to lead the change programme. 

“Early signs are promising,” Better Capital said.

Former president of fashion group Aurora Fashions Stewart Binnie was drafted in to take a permanent strategic position at the retailer in June.