// Jigsaw prepares to launch CVA
// KPMG advisors were hired last month to negotiate rents
Jigsaw is reportedly preparing to launch a CVA next week, which could lead to the closure of a raft of stores.
The fashion retailer, which employs around 900 people, drafted in advisors from KPMG last month to look at rent negotiations with landlords.
Cavendish Corporate Finance was also hired to seek a new external investor or to look at a potential sale process.
- Stores at risk as Jigsaw calls in advisers over potential sale
- Karen Millen’s ex-CEO Beth Butterwick joins Jigsaw to “work on a project”
Reports of Jigsaw permanently closing an unspecified number of its 75-strong store estate were released last month after KPMG was drafted in.
Earlier this year, Jigsaw hired the former chief executive of Karen Millen, Beth Butterwick, to work on a project on an interim basis.
Jigsaw said Butterwick is “currently working on a project” but would not reveal the details, Drapers reported.
Moreover, Jigsaw’s parent company Robinson Webster reported a two per cent decline in group turnover to £102 million in the year to 29 September 2018.
Gross profit margin for the group was 63 per cent, compared with 62.5 per cent in 2017.
Its operating loss declined by a colossal 1800 per cent from £500,000 to £9.5 million, while underlying adjusted EBITDA fell 85 per cent to £400,000.
Separately, fashion retailer River Island said it was considering taking out a CVA or other form of administration earlier this week as the Covid-19 pandemic took its toll on trading.
The retailer is seeking to close some of its stores and slash rents on others across its 300-strong estate.