Carphone Warehouse founder David Ross swoops in to rescue talks for Jigsaw

Alys Key
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Jigsaw has been hit by higher import prices (Source: Jigsaw)

Womenswear chain Jigsaw could get a reprieve from its financial woes as Carphone co-founder David Ross lends his backing.

Jigsaw's controlling shareholder John Robinson is in talks with Ross, a long-standing acquaintance, about a rescue deal, according to Sky News.

Ross could invest several million pounds in the business, which is said to need at least £10m to ease pressure.

Athough the chain saw an increase in sales in the run-up to Christmas, it has been negatively impacted by higher import costs.

The retailer confirmed it was seeking a buyer in October last year, and has attracted the interest of Aurelius Advisers and South African fashion group Foschini, which has recently made aggressive moves into the UK market, buying Hobbs, Phase Eight and Whistles.

KPMG were brought in to assess offers for Jigsaw and it now looks like Jigsaw could be close to closing a deal.

In addition to new investment, sources told Sky that a new debt provider had been lined up to replace current lender Barclays.

Last month brought a string of bad news for high street retailers, including fashion retailer New Look, which is set to close stores. M&S has also announced the closure of a raft of stores, hitting hundreds of jobs.

Even the mighty H&M's profits have fallen as it struggles with the growth of online shopping.

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