High street fashion store Jigsaw confirms it is seeking a buyer amid retail sector downturn

 
Lucy White
Sources have said the company is facing a "cash pinch" (Source: Jigsaw)

High street fashion retailer Jigsaw has confirmed it is seeking a buyer, as the retail sector shows signs of struggling amid rising inflation.

Controlling shareholder John Robinson, who was one of the company's co-founders, has appointed KPMG to gauge the interest of prospective buyers, Sky News first reported yesterday.

A spokesperson from Jigsaw confirmed the news, saying there had been “a number of approaches” looking buy either a majority or minority stake.

Read more: Jigsaw gives £493,000 to employees as part of a John Lewis style profit-sharing deal

“No sale process has been activated but we continue to have conversations with interested parties,” she said.

Jigsaw has a more than 80-strong store estate but is showing signs of a “cash pinch”, sources told Sky. This may necessitate a sale before Christmas.

In its most recently filed accounts, for the year ending October 2016, Jigsaw was generating turnover of £94.7m and profits of £6.2m – both of which were up from the previous year.

But earlier this week, figures from the Confederation of British Industry (CBI) revealed that retail sales in the year to October had dropped at their fastest rate since the height of the financial crisis.

Read more: Pound drops after retail sales fall at fastest rate since financial crisis

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