British high street retailer Jigsaw is believed to have secured a five million pound funding from an investment vehicle controlled by David Ross, the co-founder of Carphone Warehouse.

The move, initially publicised by Sky News, has made Ross a majority shareholder in the business. As such, a source for the media outlet suggested that the investment places Ross ahead of Jigsaw co-founder John Robinson as the controlling shareholder.

The new funding is said to be targeted towards establishing a more resilient long-term financial foundation for the company, the source for Sky News noted. It would ultimately ensure a “significant balance sheet reorganisation and debt reduction”, while further backing infrastructure development, such as a new online proposition for the brand.

Ross reinvests as Jigsaw tackles turbulent market

Ross had first invested in Jigsaw back in 2018 as part of a 20 million pound rescue deal, which came at a time when the retailer was tackling a turbulent financial environment. His latest injection comes just weeks after Jigsaw’s short-term chief executive officer, Hash Ladha, announced plans to leave the company in summer. The search for his replacement is said to be underway.

For Jigsaw’s most recently filed financial year for the 12 months ended January 27, 2024, the retailer slipped into the red after efforts to bolster brand marketing and staff had not borne fruit. The company reported a pre-tax loss of 3.6 million pounds, after previously reporting a profit of 816,000 pounds in the year prior. This came despite a marginal rise in revenue, yet Jigsaw affirmed that “work [was] underway” to ensure improvement.

The report stated: “At the beginning of the current financial year, against a continuing challenging market, [Ladha] set about clarifying the proposition and refreshing the leadership team and encouraging results of his initiatives have begun to appear in autumn 2024. He has also restructured key areas of the business to ensure the cost base is aligned to the business objectives.”

Edit March 4, 11:25 CET. Jigsaw has now provided confirmation of the investment in a statement to FashionUnited, which reaffirms the intention to use the funding to "strengthen its financial position and support long-term growth, enabling the brand to continue delivering a fresh, premium womenswear proposition to its loyal and broadening customer base".

The statement continued: "This restructuring process will result in a significant balance sheet reorganisation and debt reduction. This investment is designed to place Jigsaw on a firm footing allowing the business to grow and setting the firm up for long-term success.

"The plan will focus on modernising modernising operations, upgrading infrastructure, expanding online capabilities, including funding a new online proposition, growing concession and partnerships, and boosting fulfilment capacity."