The Carphone Warehouse co-founder David Ross is ploughing millions of pounds into Jigsaw, the fashion retailer, in a deal that will result in him becoming its majority shareholder.
Sky News understands that an investment vehicle controlled by Mr Ross, who also chairs the National Portrait Gallery, is committing roughly £5m more to the chain, seven years after his initial investment.
Sources said the additional financial injection from Mr Ross would see him replacing Jigsaw founder John Robinson – who established the business in 1970 – as the controlling shareholder.
It comes weeks after it emerged that Hash Ladha, Jigsaw’s chief executive for just 15 months, would be leaving the company in the summer.
A new boss is understood to be in the process of being recruited.
Like most high street chains, the loss-making retailer was forced to seek rent reductions from landlords and close unprofitable stores during the pandemic.
Follow our channel and never miss an update
A source close to Jigsaw said the new funding would establish a more resilient long-term financial foundation for the company.
Trump tariffs latest: US stock markets tumble – as UK releases list of products it could hit with retaliatory tariffs
Donald Trump’s tariffs will have consequences for globalisation, the US economy and geopolitics
Trump trade war: The blunt calculation that should have spared UK from reciprocal tariffs
It will entail what the source described as “a significant balance sheet reorganisation and debt reduction”.
Be the first to get Breaking News
Install the Sky News app for free
Part of the capital will be used to invest in infrastructure, including a new online proposition for the brand and an improved fulfilment capability.
High street retailers which survived the COVID pandemic are now facing the severe headwinds of the government’s increases to employers’ national insurance contributions, which come into effect this month.
Jigsaw declined to comment.
