Aquascutum, the luxury British clothing brand, is to return to British ownership after being bought by Harold Tillman, the fashion entrepreneur.

The deal, the terms of which were not disclosed, will see the company, most famous for its trench coats, united with another classic British brand - Jaeger - which Mr Tillman brought in 2003.

Mr Tillman, who worked with Belinda Earl, the Jaeger chief executive, to secure Aquascutum, estimates the combined global brand sales of the two companies will total more than £300 million.

Renown, the Japanese group which brought Aquascutum for £77 million in 1990, launched a review of the company earlier this year.

The group had been experiencing financial difficulties and was keen to raise cash.

Kim Winser, Aquascutum's British boss, quit in May after failing in a bid for the company that she had spent 12 months trying to negotiate.

A new managing editor, Yukio Ueda, was parachuted into the business to take her place.

The group's distributor in China and South-East Asia, YGM Trading, had been named by Renown as a preferred bidder for the company. Under today's deal YGM, whose other brands include Guy Laroche, Michel Rene and Charles Jourdan, has acquired the rights for Aquascutum's Asia business.

Aquascutum's British heritage dates back 158 years. In 1853, the group produced the first waterproof wool which was used to supply coats for British Army officers serving in the Crimean War.

Famous customers have included the Queen Mother, Baroness Thatcher, Sophia Loren, Humphrey Bogart and Cary Grant.

Though there remains a huge appetite in Asia for branded goods, a question mark has hung over demand for luxury goods in a recession.

In May Burberry, another fashion brand, posted a 13 per cent drop in annual underlying profits.

Renown's review of Aquascutum had left a question mark over its British employees - particularly its factory in Corby, Northamptonshire, where 120 people are employed.

Jaeger declined to comment on the outcome for the factory or for Aquascutum staff employed at its total 17 UK locations.

Mr Tillman, said: "We are pleased to be able to return this global luxury heritage fashion brand to British ownership. The Aquascutum brand has a strong positioning in the international arena and has seen significant investment in recent years.

"Belinda and I have worked together for the last five years and our strong track record, experience and complimentary skills, will enable us to continue the development of the Aquascutum brand worldwide."

Jaeger, which was established in 1884, was bought by Mr Tillman in 2003. He brought it for an undisclosed sum from Richard Thompson, a fellow businessman, who in turn had acquired it weeks before from Coats, the cloth and thread group, for £1.

He transformed the ailing brand to an elegant high street name once again with tactics including employing Laura Bailey, the model, as the new "face" of the company and its ambassador.

Mr Tillman, who counts Sir Philip Green, the retail billionaire, and Sir Stuart Rose, the executive chairman of Marks & Spencer, as close friends, made his first million before he was 30 after buying and taking public Lincroft Kilgour, a Savile Row tailor for which he worked.

The entrepreneur, 63, made history as one of the first male students at the London College of Fashion, which he joined soon after leaving school at 15 in 1969.

Long before it was commonplace, he recognised the value of celebrity endorsement, securing George Best, the late footballer, to support a range of children’s clothes.

He also owns Allders of Croydon, the department store and is chairman of the British Fashion Council.

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