Jigsaw’s suppliers file claims for £47m after fashion chain’s restructure last year…more than £1m for each store it has in operation
Short-changed: Jigsaw triggered an insolvency process known as a company voluntary arrangement in summer 2020
Jigsaw’s suppliers have filed claims for £47million after the fashion chain’s restructure last year…more than £1million for each store it has in operation.
The company – owned by Carphone Warehouse tycoon David Ross and which once employed the Duchess of Cambridge – triggered an insolvency process known as a company voluntary arrangement in summer 2020.
It closed stores after creditors agreed to the proposal in the heat of the pandemic. It now has 40 shops. But new documents lay bare the financial pain felt by suppliers.
They show that Jigsaw has agreed to set aside just £1.5million to pay creditors that were short-changed by the insolvency.
Another fund has been created to reimburse creditors further if the firm achieves profit of more than £6.5million by January 2025.
Ross, 56, co-founded Carphone Warehouse with Charles Dunstone and is worth an estimated £676million. He acquired Jigsaw in 2018 but has said little about his purchase since then. Last month, Jigsaw said profit – before interest, tax, depreciation and amortisation – reached £1.8million in the six months since stores reopened in April this year. That compared to a full-year loss of £21million in the financial year to January.
In a statement, chief executive Beth Butterwick said: ‘We are confident and optimistic about Jigsaw’s future and are pleased to see Jigsaw’s improved performance and profitability. We believe we are perfectly poised for future growth as an aspirational British, premium brand, accessible across multiple channels.’
There have been rumours the beleaguered chain has recently received approaches from potential buyers. Last night, a spokesman said: ‘As a much-loved British fashion brand and in the midst of a successful transformation, Jigsaw will always have suitors.’