Jaeger fails to shake off losses as private equity owner Better Capital explores sale
Troubled fashion retailer Jaeger failed to shake off its losses last year, despite a rise in sales, as its private equity owner Better Capital attempts to revive its fortunes.
The company reported a pre-tax loss of £7.9m in the year to 28 February 2015, down from £9.9m the previous year, accounts on Companies House show.
Total sales increased by six per cent to £84.2m, while like-for-like sales increased by eight per cent in the year to 28 February.
The group blamed the mild weather last autumn, which forced the company to offer more discounts to rid itself of its stock but hit its gross margin as a result.
Womenswear was four per cent of last year, as strong sales of outerwear and knitwear helped offset a 15 per cent sales fall in dresses. Menswear sales were up 15 per cent driven by suits and jackets, up 10 per cent and 31 per cent respectively.
Sales via its website increased by 42 per cent, thanks to mobile and tablet sales, which now account for 36 per cent of online sales. The retailer launched a new website in February and expects to record double digit sales for the next two years.
Jon Moulton’s Better Capital took control of Jaeger in 2012 after acquiring its debt and buying a 90 per cent stake from its long-time owner Harold Tillman. However, its trading woes have persisted and at the end of the summer the firm hired advisers at AlixPartners to explore options for the business, including a sale.
Jaeger parted ways with its chief executive Colin Henry in September ahead of the crucial Christmas season and Better Capital’s operating partner Chris Horobin has stepped in on an interim basis.
Under Henry the company tried to refocus its strategy on its British heritage and rebuild its brand appeal through reintroducing quality fabrics, investing online and revamping stores.
Jaeger is also moving out of its flagship store on Regent Street after 80 years after selling the lease to US luxury goods group Coach, saying the store was “too big”.