David Ross invests £5 million and becomes majority shareholder of Jigsaw
- David Ross is injecting £5 million into Jigsaw, becoming the majority shareholder.
- The investment follows Ross's initial backing seven years ago and replaces founder John Robinson as the controlling shareholder.
- The new funding aims to restructure the company's finances and enhance their online capabilities amidst challenging market conditions.
In a significant development for the UK fashion retailer Jigsaw, David Ross, co-founder of Carphone Warehouse, has recently committed £5 million to the brand. This financial move, which takes place approximately seven years after his initial investment, allows Ross to become the majority shareholder, succeeding founder John Robinson, who established the company back in 1970. The investment comes at a time when many high street retailers are navigating the challenging landscape brought on by the COVID-19 pandemic, which has seen widespread store closures and financial distress across the retail sector. The additional funds from Ross are expected to not only reinforce Jigsaw's balance sheet but also facilitate a significant restructuring, which will include reducing existing debts. This transformation aims to create a more stable long-term financial foundation for the company, which has struggled with profitability. A source familiar with the situation has described the funding as crucial in establishing a robust infrastructure, allowing Jigsaw to enhance its online presence and improve its fulfillment capabilities. Jigsaw's chief executive, Hash Ladha, is set to leave the company amid these changes, having held the position for just 15 months. The search for a new executive to lead the brand is already underway, highlighting the current volatility within Jigsaw's leadership. The ongoing shifts in management and strategy underscore the necessity for the retailer to adapt to the evolving demands of the market, especially as the government prepares to increase national insurance contributions for employers, further complicating the financial landscape. In light of these challenges, Jigsaw's upcoming initiatives will likely focus on innovation and efficiency, with hopes that the reinforcement of its financial structure will lead to a successful turnaround. As the fashion industry navigates the complexities of recovery post-pandemic, Jigsaw's new direction under David Ross could serve as an essential indicator of the health and resilience of the broader retail market in the UK.