Fashion brand Jigsaw is reportedly considering a potential sale as it grapples with the challenges facing the retail sector. The company, currently owned by David Ross, co-founder of The Carphone Warehouse, has enlisted financial advisers from KPMG and Cavendish Corporate Finance to explore its options. These include renegotiating rents with landlords, evaluating the feasibility of a sale or attracting a new external investor. Jigsaw’s board is also contemplating the permanent closure of several stores, regardless of the outcome of negotiations with landlords.

A prominent presence on the UK high street, Jigsaw currently operates approximately 75 stores and employs over 900 people. In recent years, the company has streamlined its operations by scaling back in Australia and the US, focusing instead on its core womenswear collection. However, like many other retailers, Jigsaw has been severely impacted by the Covid-19 pandemic. The retail sector has faced widespread job cuts and store closures due to the economic downturn caused by the global health crisis.

In response to the challenging circumstances, a Jigsaw spokesperson expressed confidence in the selection of advisers and emphasized the board’s determination to guide the company through this period. They highlighted Jigsaw as a valued British heritage brand and affirmed their commitment to supporting the company and its staff during these difficult times.

The potential sale marks two years since David Ross acquired Jigsaw as part of a rescue deal. The current economic climate, further exacerbated by the pandemic, has compelled many retailers to reassess their strategies and make tough decisions. For Jigsaw, this entails exploring avenues like a sale or seeking external investment to ensure its future survival. With the guidance of experienced financial advisers, the company aims to find a viable path forward that safeguards its brand and employees.

Useful links:
1. Jigsaw official website
2. KPMG official website