Jigsaw in takeover talks with new Hobbs owner Foschini

499
Foschini

Jigsaw has reportedly held talks with Hobbs’ parent company Foschini in recent weeks, aiming to strike a fast-track takeover deal according to Sky News.

Late last month it was revealed that KPMG were hired by Jigsaw to oversee a sale of the retailer, hoping to find a new owner by the end of the year.

The South African retail group Foschini, which owns brands Hobbs, Phase Eight and Whistles are now understood to have been part of refinancing talks with the retailer ahead of the deadline for bids on Friday.

Other turnaround investors including R Capital and Aurelius Advisors were also reportedly invited to offer bids, along with several asset-based lenders who have been approached about a refinancing deal.

Sources close to the retailer have warned Jigsaw could experience a “cash pinch” this Christmas period, despite trading positively for the preceding year.

Last year, its profits grew by 11 per cent to £6.2 million, while sales went up by eight per cent in £94.7 million.

“There have been a number of approaches directly to Jigsaw, around the purchase of a minority or majority stake,” the retailer said last month.

Click here to sign up to Retail Gazette‘s free daily email newsletter