Luxury retailer Aquascutum has secured an £8m bank loan to help finance the loss-making business.

According to accounts filed at Companies House, the retailer made a loss of £10.3m in the 14 months to February 28, 2010.

The retailer, which is owned by Jaeger owner and British Fashion Council chairman Harold Tillman, was bought by Tillman two years ago from Japanese group Renown. Tillman is now in the final stages of securing a new loan after a bank agreed to provide a secured credit facility of up to £8m subject to due diligence and documentation.

According to its latest accounts the group has received a £6m loan from its shareholders and has been given an undertaking by Jaeger Group that it will not need to repay its outstanding debt for a year. The funds, expected to be in place in August, will enable it to repay a £3m debt to YGM, its Hong Kong and Chinese licensee, which is due in September.  

Aquascutum recently entered into an agreement with menswear retailer Austin Reed for the sale of the lease of its flagship store on Regent Street for £5m. The sale is expected to be complete by mid August. The retailer has agreed terms on two new stores which will open during the autumn.

Tillman said: “The business plan for Aquascutum is underway. We have completed the first part with a new distribution agreement in Italy… the second part is being finalised now. Wholesale orders are up and we are pleased with the progress being made with this great British heritage luxury brand.”