The sale of Jaeger has been a long time coming, although the deal that “secured its future” is understood to have taken just a week.

Jon Moulton’s investment vehicle Better Capital revealed this morning that it had acquired 90% of the luxury retailer whose owner Harold Tillman has been seeking to sell since 2007.

But it is clear from its most recent financial results that Better Capital has got its work cut out.

In Jaeger’s most recent accounts for the year to February 28 2011, Jaeger made pretax profits of £772,000, down from £2.22m in the previous year. Revenue fell 10% to £94m.

However, Verdict retail analyst Honor Westnedge says the business is an attractive prospect.

“It is an iconic world-wide brand  and in the long-term the business has huge international growth potential,” she says.

And Tillman’s decision to retain a 10% share in the business and his continuing role as chairman speaks volumes about his commitment to the business.

Tillman had already kicked off changes across the business by launching a business review. It emerged last month that as part of this, head office staff are under consultation. Better Capital is likely to continue the restructuring with investment and efficiency finding.

Better Capital founder and managing partner Jon Moulton says he does not regard the retailer as a “troubled” company, and he is understood to be devising an exit strategy already - but not before he increases efficiencies in the business.

He says he and will prioritise areas including systems, logistics, purchasing and design.

By Jaeger’s own admission though, Moulton’s investment will “secure the future of the business” - perhaps an indicator that the retailer’s future was, if not in doubt, unclear.

Verdict retail analyst Honor Westnedge believes investment to strengthen its core operations will be key to Jaeger’s turnaround.

“Its expansion through stores, concessions and online both across the UK and internationally has not been upheld by enough investment in the supply chain,” said Westnedge. “So Better Capital will need to secure its existing operations and get all that sound rather than expanding further internationally.”

With 50 stores in the UK alongside 70 concessions, Jaeger’s international business has been the main focus recently as it seeks a presence in China, Hong Kong and New York.

But according to Retail Week Knowledge Bank, the UK business accounts for 95% of group turnover, so it may be time to focus on this strength. 

Sources indicate that there will be news “soon” on Tillman’s other business, Aquascutum.