Fashion group Jaeger has been acquired by Jon Moulton’s investment vehicle Better Capital, ensuring the “future of the business”.
Better Capital has acquired 90% of the business through a multi payment deal, it is understood. The first payment is £19.5m, although the total price Better Capital has paid for the business is not yet known.
Harold Tillman, who previously had a 70% share in the business, retains a 10% share and will remain chairman at the retailer.
In the year to February 28 2011, Jaeger made pretax profits of £772,000 including exceptionals, down from £2.22m in the previous year. Sales were up 10% to £94m.
Better Capital founder and managing partner Jon Moulton said: “Jaeger is really not by our standards, a troubled company.
“Jaeger is in need of funding and stabilisation and we’re hoping to improve operations in the next year or so.”
Moulton added he is likely to keep ownership “for quite a reasonable amount of time”, as Better Capital’s standard investment time span is between three and five years.
“We’re taking all the normal steps to improve the efficiency of the business and there are clearly issues that need to be tackled,” he said.
Moulton said he will be looking at improvements across the whole of business, referring to systems, logistics, purchasing, merchandising and design.
He added: “It would appear customers like the product.”
A spokeswoman for Jaeger said: “The Board is pleased that Jaeger has a new owner in Better Capital, thereby securing the future of the business.
“The investment that Better Capital has provided will create a strong foundation on which to further develop our iconic brand.”
Tillman’s other fashion business Aquascutum is also believed to be up for sale.