Harold Tillman Sells Jaeger to Jon Moulton's Better Capital for Just £19.5 Mn
British fashion entrepreneur, Harold Tillman has sold majority of his stakes in luxury brand, Jaeger to a private equity firm Better Capital for just £19.5 million.
Better Capital, owned by British venture capitalist Jon Moulton will now take a 90 percent stake in Jaeger. This is the second acquisition of Better Capital who earlier completed its first acquisition of double-glazing firm Everest for £25 million.
"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," a statement by Jaeger's directors mentioned.
The UK Based fashion brand and retailer of womenswear and menswear, Jaeger operates from a number of stores, concessions and outlets in the UK and overseas.
The label's audited revenues and operating profit for the year to 28 February, 2011 were £94 million and £1 million respectively.
Tillman, who is also the chairman of the British Fashion Council, brought Jaeger around 10 years ago when the label was on the verge of collapsing. He bought Jaeger for a token amount when its annual losses stood at £12 million and gradually returned it to profit.
According to a Telegraph report, when Tillman purchased Jaeger for a token sum, it was foundering badly. Under his stewardship, and that of chief executive Belinda Earl, it recovered some of the poise that made Jaeger one of British fashion's hottest high street names in the 1950's, 60's and 70's.
Under Tillman's guidance, the Jaeger team acquired the lease on the Allders flagship store in Croydon from administrators Kroll in 2005 and continued to trade under the Allders name in Croydon. Following this, in 2009, the team bought luxury clothing label Aquascutum.
After the acquisition of Aquascutum, Tillman created a group with combined sales of more than £300 million.
However, according to reports, the 21st century Jaeger was torn by its desire to appeal to a younger clientele in addition to its core audience of older and more affluent clients.
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