Green shoots are growing at Aquascutum

British fashion house Aquascutum has trimmed its losses as its new owners fight to return the label to its former glory.

The 159-year-old coat maker was near collapse two years ago but is seeing the start of a revival after being bought by the team behind Jaeger's resurgence — rag trade mogul Harold Tillman and Jaeger chief executive Belinda Earl.

Latest accounts show the group was £6 million in the red in the six months to the end of February last year, compared with a £17 million loss in the previous eight months.

Sales growth is said to be into double digits and three new stores opened in recent months, including shops in Canary Wharf and Windsor.

"The Jaeger and Aquascutum teams, led by Belinda Earl, have masterminded the recovery of Aquascutum," said Tillman. "We are now delivering significant sales growth. Aquascutum is a British heritage brand with significant untapped global potential."

The British fashion industry is hoping that Tillman and Earl will be able to "do a Burberry" and make fashion lovers lust after a struggling label again.

But design critic Stephen Bayley warned that emulating Burberry's success would be difficult: "Certainly, with its huge deposits of image capital, Aquascutum has the potential for renaissance that Burberry once enjoyed, but right now its formal style is not quite synched to the spirit of the age.

"Is there anybody anywhere going to bed and saying to themsleves "I must buy an Aquascutum blazer"? It could happen, but not I think just yet."

In a bid to broaden Aquascutum's appeal, Tillman and Earl hired Joanna Sykes as design director. Sykes, a graduate of Central St Martins who worked at Armani and Alberta Ferretti before launching her own label, will unveil her first collection for Aquascutum at London Fashion Week next month. Her own label, Sykes, has won acclaim for skilful draping, flattering tailoring and its luxurious basics.

Aquascutum was founded in 1851 in Regent Street and its raincoats were worn by British troops in the Crimean War. Its designs have adorned Cary Grant, Gregory Peck and Sophia Loren.

It was bought in 1990 by Renown, a Japanese firm, whose turnaround plans floundered. After a management buy-out was unsuccessful in 2008, it lost its chief executive, Kim Winser, the following year. Before its sale to Tillman and Earl, its staff were put on notice amid fears for its survival.