Better Capital, the private equity owner of Jaeger, has abandoned plans to sell the retailer after offers failed to match expectations.

Last year Jaeger’s owner hired advisers at AlixPartners to explore options for the business, including a possible sale. The sale attracted a handful of bids coming in at the £35m mark, according to reports. Better Capital had hoped for more than £40m.

After failing to attract a higher price, Better Capital shelved plans to sell off the company and instead will invest further in the chain.

Better has pumped £63m in Jaeger since it acquired the company back in 2012. Sources told the Telegraph Better had indicated it was prepared to keep hold of Jaeger for at least another two years.

Jaeger has faced a tough battle on the high street in recent years, with the chain recording pre-tax losses of £7.9m in the year to 28 February 2015.

The fashion retailer, bought by Jon Moulton’s Better Capital in 2012, is more than two years into a five-year turnaround plan, which has so far involved a refocus on British manufacturing, reintroducing better quality fabrics, investing more heavily in online and revamping stores. However, chief executive Colin Henry, who implemented the plan, stepped down last year while  chairman Peter Williams left the retailer months earlier.

Retail Week has contacted Jaeger for comment.