Jigsaw suppliers file claims for £ 47million after channel restructuring
Jigsaw suppliers are filing claims for £ 47million after the fashion chain restructured last year … over £ 1million for every operating store
Short-changed: Jigsaw triggered an insolvency process known as a corporate voluntary arrangement in the summer of 2020
Jigsaw’s suppliers have filed claims for £ 47million after the fashion chain restructured last year … over £ 1million for every store it has in operation.
The company – owned by Carphone Warehouse mogul David Ross and formerly employed by the Duchess of Cambridge – sparked an insolvency process known as a corporate voluntary arrangement in the summer of 2020.
It closed stores after creditors accepted the proposal in the heat of the pandemic. Today it has 40 stores. But new documents lay bare the financial pain suppliers are feeling.
They show that Jigsaw has agreed to set aside just £ 1.5million to pay creditors who have been harmed by the insolvency.
Another fund has been set up to further repay creditors if the company makes a profit of more than £ 6.5million by January 2025.
Ross, 56, co-founded Carphone Warehouse with Charles Dunstone and is worth around £ 676million. He acquired Jigsaw in 2018, but has said little about its purchase since then. Last month, Jigsaw said profit – before interest, taxes, depreciation and amortization – reached £ 1.8million in the six months since the stores reopened in April of this year. This compares to an annual loss of £ 21million in the fiscal year ended in January.
In a statement, Chief Executive Officer Beth Butterwick said: “We are confident and optimistic about the future of Jigsaw and are delighted to see the improvement in performance and profitability of Jigsaw. We believe we are well poised for future growth as an ambitious premium UK brand, accessible across multiple channels. ‘
There have been rumors that the besieged chain has recently received approaches from potential buyers. A spokesperson said last night: “As a highly regarded British fashion brand undergoing successful transformation, Jigsaw will always have suitors.”