Retailer Jigsaw reportedly closing in on rescue deal
The womenswear firm is said to have secured a £20 million injection.
Fashion retailer Jigsaw is poised to offload a stake to the founder of Carphone Warehouse as it finalises a plan to reboot the business, according to reports.
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The womenswear firm is said to have secured a £20 million injection, with entrepreneur David Ross stumping up £5 million in exchange for a significant shareholding.
The deal – reported by Sky News – will see majority shareholder John Robinson push £5 million into the retailer, while a further £10 million will come from Secure Trust Bank as it replaces Barclays as Jigsaw’s predominant lender.
The group has been searching for fresh investment to help shield itself from the bitter conditions battering the UK high street, which caused Toys R Us and Maplin to collapse into administration in February.
The bleak start to the year for British retailers has sparked a raft of rescue deals with New Look and Carpetright seeking CVAs, and Mothercare locked in financing talks.
Suit retailer Moss Bros has also warned over profits and fashion chain Select has put 2,000 jobs at risk as it weighs up store closures.
Retailers have come under sustained pressure as rising business rates hit margins and cash-squeezed consumers feel the pinch from persistently high inflation.
The latest slew of economic data released on Wednesday pointed to an added blow from Britain’s cold snap, with high street and online shoppers halting spending to avoid disruption.
Year-on-year sales volumes declined for the first time since October 2017 in March, according to the CBI’s latest survey of 109 firms for its monthly Distributive Trades Survey.
Jigsaw, which has around 80 UK stores, announced in March that chief executive Peter Ruis would step down, with chairman Charles Atterton returning to an executive role.