Stores at risk as Jigsaw prepares to launch CVA

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Jigsaw CVA KPMG
The fashion retailer, which employs around 900 people, drafted in advisors from KPMG last month
// 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.


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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.

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2 COMMENTS

  1. When are we going to stop playing cover up for this awful government and pretending that Brexit isn’t affecting us. These store managers know full well that sales fell off a cliff within a week of the referendum, just like many businesses – especially retail – who are feeling the disastrous effects of this act of economic sabotage. The Jigsaw director at the time was outspoken about the disastrous effect Brexit would have and remained outspokenly pro-EU.

    One need look no further than who ‘owns’ Jigsaw currently to see that the wrong man is at the helm of a British business which is being harmed by Brexit and is in the ownership of one of the compromised opportunists who are invested in Brexit and the worst government we have ever had.

    They may need his money, but Ross has been toxic for businesses for years. He brings literally zero expertise, and always has – leaving his over-valued projects better off without him.

  2. Here here! Brexit has stuffed many retailers. Its even as simple as well known brands havng to spend there time focused on securing new suppliers outside europe and changing the quality or the sizing or the designs in the process, instead of been able to concentrate on keepng things fresh and exciting for the customers that havent stopped spending due to instability.

    But it will all be so much better when we can buy chlorine chicken and American brands. Hah.

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