Jigsaw is understood to be in consultation with staff over plans to close its warehouse in Isleworth, West London.
According to The Mail on Sunday Jigsaw plans to merge its two warehouses into a single depot in Swindon in Wiltshire, where Jigsaw owns the freehold on the property. Around 20 jobs are said to be under threat.
Jigsaw owner John Robinson denied that the premium womenswear chain was struggling in the downturn and told the newspaper that trading had been more buoyant than expected and that Jigsaw remained profitable.
He said: “We’re looking at all our overheads at the moment. It’s a shame we have to make redundancies.”
Earlier this year Jigsaw wrote to its landlords requesting to pay its rents on a monthly rather than quarterly basis.
Jigsaw’s last accounts lodged at Companies House showed that profits had fallen by 70% to £2.2 million for the year ended September 2007.