UK Fashion Retailer Jigsaw Considers CVA Proposal Amidst Pandemic Struggles
- Fashion retailer Jigsaw planning to launch CVA proposal
- KPMG appointed for rent negotiations with landlords
- Permanent closure of unspecified number of UK stores
- Cavendish Corporate Finance seeks interest from potential buyers or investors
Fashion retailer Jigsaw is reportedly set to launch a CVA proposal in the coming week as the ongoing impact of the coronavirus takes its toll on the UK high street. The womenswear retailer, which employs around 900 people, has brought in auditing firm KPMG to negotiate rents with landlords. It is believed that Jigsaw will permanently close an unspecified number of its 75 UK stores as part of the CVA. Last month, it was revealed that, along with KPMG, Jigsaw had also appointed Cavendish Corporate Finance to seek out interest from potential buyers or external investors. A Jigsaw spokesperson told Sky News: ‘Jigsaw is a valued British heritage brand and the Board is determined to do all it can to steer the company and its staff through this incredibly challenging time.’ David Ross, the current owner of Jigsaw, first acquired the group in 2018, and during his tenure, the chain has streamlined its operations and retreated from its Australian and US markets. Retail Sector has contacted Jigsaw for comment.
Factuality Level: 7
Factuality Justification: The article provides accurate information about Jigsaw’s plans to launch a CVA proposal due to the impact of COVID-19 on its business and the involvement of KPMG in rent negotiations with landlords. It also mentions the potential closure of an unspecified number of stores and the appointment of Cavendish Corporate Finance to seek out potential buyers or investors. The article is based on a reputable source, Drapers, and includes a statement from Jigsaw’s spokesperson. However, it lacks specific details about the extent of the impact on the company and does not include any personal opinions or biased language.
Noise Level: 3
Noise Justification: The article provides relevant information about Jigsaw’s plans to launch a CVA proposal due to the impact of COVID-19 on its business and potential store closures. It also mentions the involvement of auditing firm KPMG and Cavendish Corporate Finance in seeking buyers or investors. However, it lacks analysis, evidence, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK retail sector, landlords of Jigsaw stores
Financial Rating Justification: The article discusses the financial struggles of a retail company and its plans to close stores due to the impact of COVID-19, which affects both the company’s operations and the landlords it has rent negotiations with. This is relevant to financial topics as it involves business decisions and impacts the UK retail market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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