// Jigsaw will shut quarter of its store estate after CVA was given green light by creditors
// The retailer closed stores during lockdown which affected sales
Jigsaw will reportedly shut a number of stores and switch to turnover-linked rent after its CVA proposals were approved by its creditors.
The premium fashion retailer opted for a CVA after witnessing a significant drop in sales since the Covid-19 pandemic struck the UK, The Times reported.
Jigsaw was forced to temporarily close stores due to the UK lockdown in late March, which further affected its finances.
READ MORE: 19 stores at risk as Jigsaw launches CVA proposal
The retailer has 74 stores and employs 900 people across the UK.
At least 200 jobs will be made redundant from 13 store closures, which includes outlets in Westfield London, Bluewater in Kent, Manchester and Birmingham.
Jigsaw is also hoping to switch 41 shops to turnover-based rent.
Its rival AllSaints used a CVA last month to push through similar demands while fast fashion retailer New Look triggered a second CVA to switch to turnover-linked rent.
Jigsaw said it was “pleased” its CVA proposal had been accepted by the majority of creditors.
“We are pleased that the proposal has been accepted by the majority of our creditors,” A spokesperson for Jigsaw said.
“The arrangement puts the company on solid footing moving forwards, and allows us to execute our turnaround strategy by refocusing the company on its core business as a women’s British Heritage brand, in what is our 50th year anniversary.”
KPMG partner and joint supervisor of the CVA, Will Wright said: “The successful CVA proposal ensures that the business is well-placed to trade in the current retail environment, and is an important step in the company’s wider review of its operations.”
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