Jigsaw has reportedly secured a £20 million deal in a bid to protect itself from being added to the growing list of recent high street casualties.
According to Sky News, the deal would see majority shareholder John Robinson inject £5 million into the fashion retailer.
The high street chain is also poised to offload a stake to entrepreneur and Carphone Warehouse founder David Ross, who is reportedly stumping up £5 million in exchange for a significant shareholding.
The remaining £10 million will come from Secure Trust Bank as it replaces Barclays as Jigsaw’s predominant lender.
Jigsaw has been searching for fresh investment for a few months and is reportedly in the process of finalising a plan to reboot the business.
The company grabbed headlines in October when it hired KPMG to assess offers for the business, including the sale of a stake.
The news prompted from Aurelius Advisers, Office parent company Truworths, South African fashion group Foschini – which already runs British fashion retailers Hobbs, Phase Eight and Whistles – and Ross himself.
Jigsaw chief executive Peter Ruis stepped down earlier this month as the £20 million deal was closer to being finalised, and chairman Charles Atterton returned in an executive role.
Although Jigsaw – which trades from about 80 standalone shops in the UK – recorded a sales uptick in the lead-up to Christmas, higher import costs has still negatively affected the business.
Its new deal will come during a turbulent time for UK retail, with Maplin and Toys R Us UK falling into administration.
Meanwhile, New Look had its company voluntary arrangement (CVA) approved by creditors, which will lead to the closure of 60 stores and the loss of up to 980 jobs, and fashion chain Select has put almost 2000 jobs at risk as it mulls store closures.
Carpetright is also reportedly pursuing a possible CVA, off-licence retailer Conviviality is on the verge of appointing administrators, and both Mothercare and House of Fraser have been locked in financing talks.