US lifestyle brand Coach has confirmed it is taking over the Regent Street flagship Jaeger has occupied for 80 years.
Jaeger and The Crown Estate, which owns the freehold to the 27,500 sq ft store at 200-206 Regent Street, have agreed to sell the lease to Coach.
Coach will relocate from its smaller store a few doors down at 76-78 Regent Street. The larger store will include space for footwear business Stuart Weitzman, which Coach acquired in January.
Jaeger, which moved into the unit in 1935, could not say if staff at the Regent Street shop will be made redundant or redeployed elsewhere in the business.
A spokeswoman said: “A key part of Jaeger’s strategy is to refresh our store portfolio and increase investment in our online offer. As we’ve previously announced, our Regent Street store was oversized and we are focused on locations that are more appropriate for the Jaeger brand.
”Our Regent Street staff are fully aware of our plans and we are working together through this transition.”
Colin Henry, who stepped down as chief executive of Jaeger last month, told Drapers in July that he was hoping to move the Regent Street store to a smaller unit nearby. ”In modern day retailing I don’t need a 27,500 sq ft store. It’s like a department store; we have to generate so much product to fill it,” he explained at the time.
Following Henry’s departure, Jaeger’s private equity owner Better Capital appointed turnaround consultancy AlixPartners as a financial advisor.
Better Capital is now understood to be exploring a sale of the business, with AlixPartners overseeing the talks.
Jaeger has 31 stores, 31 outlet stores and 70 concessions.
Net sales at Coach fell 1% to $1.03bn (£673m) for the 12 weeks to September 26, compared to the same period last year. Net profit dropped 19% to $96.4m (£63m).