The private equity owner of Jack Wills has reportedly commenced a search to find a new owner for the retailer. BlueGem is soliciting interest for the “right kind of buyer”, but would retain a minority stake in Jack Wills.
Advisors from KPMG, who had been drafted in review the fashion retailer and look at future opportunities, have circulated a document to help stimulate interest in Jack Wills. “The current investors believe the business can benefit from being part of a larger platform and would welcome the opportunity to retain a minority stake, which allows them to realise value from their investment to date,” the document reads.
The document also outlined ideas to help restore Jack Wills’ profitability. This included the closure of its Covent Garden branch once the lease expires in March next year, the closure of US stores, and reducing head office salaries to save money.
“Management remains focused on its strategy of new product development, improving margins and driving cost efficiencies, which is already reaping benefits,” – spokesperson at Jack Wills
The news comes less than two weeks after reports emerged that Jack Wills was facing a cash crunch. Jack Wills revealed a pre-tax loss of £29.3 million for the year to January 31, 2018 according to accounts filed at Companies House earlier this year.
