Jaeger cuts losses as new Private Equity owner draws up

Jaeger cuts losses as new Private Equity owner draws up turnaround plan; photo Djamila Celina Melcherts at London Fashion Week

The new owner of Jaeger is putting together a five-year plan to put the struggling clothing retailer back on track after it was bought by a private equity firm.

Jaeger's flagship store is on Regent Street in London. Better Capital bought Jaeger from fashion entrepreneur Harold Tillman some time ago as the fashion retailer racked up losses.

The private equity firm appointed new management and is looking to rebuild the brand and rebuild the business. However, newly-published financial results show that in the year to February 23, losses at Jaeger were cut as the new owner restructured the business and put effort in marketing.

Initially, change was hard of course because people overestimate the value of what they have and underestimate the value of what they may gain by giving that up Jaeger is now operating from 40 stores, including its flagship site on Regent Street in London, after closing four standalone stores and 27 concessions in the last year.

The results show that sales fell 17pc to £70.7m in the year, but that pre-tax losses fell from £35.5m to £13.1m.

The change of ownership has provided a sound financial base for the business and enabled investment. In terms of current trading, Jaeger was pleased by the early signs of an economic uplift, and the Autumn Winter collection has performed better than previous seasons.

Going forward Jaeger will focus solely on the core Jaeger heritage brand and return to being a consumer centric and design lead organisation whilst moving away from the unprofitable sub-brands.