Jack Wills posts 9.7 million pounds FY loss

British preppy firm Jack Wills, largely owned by its founders Peter Williams and Robert Shaw, posted a 9.7 million pounds pre-tax loss for the year to February 2013, spinning off talks of a potential flotation or sale. Jack Wills, whose 70 percent

stake remains in the hands of founders Peter Williams and Robert Shaw, has moved into the red after a turbulent year.

It’s noteworthy that the fashion retailer was down from a 3.3 million pounds profit after assuming the cost of closing its Aubin & Wills chain – announced earlier in July - and installing a new computer system.

Last released data showed sales from continuing operations rose 8 percent to 122.9 million pounds and sales from discontinued operations – Aubin & Wills – were 10.2 million pounds.

Sister brand Aubin & Wills made an operating loss of 1.3 million pounds and there was a 2.6 million pounds exceptional charge for axing the brand, as the process included the close down of 13 stores.

Net debt rocketed to 3.9 million pounds after the retailer took on borrowings to fund a new stock management system.

Jack Wills into the red: 9.7 million pounds pre-tax loss

Despite posting a 9.7 million pounds pre-tax loss for the year to February 2013, total sales grew to 133 million pounds from 121 million pounds at Jack Wills.

The Devon- based firm still remains largely owned by its founders (who hold a total 70 percent stake in the fashion firm). Private equity firm Inflexion holds a 27 percent stake and the chain is being groomed for a sale or float in the medium term, as widely reported by British media.

According to the ‘Financial Times’, owners Peter Williams and Robert Shaw would be preparing for a sale or initial public offering expected to come at over 500 million pounds in the next years.