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Jigsaw demands 30% rent cuts

Jigsaw is the latest retailer to demand rent cuts from landlords in a bid to avoid becoming another casualty on the high street. 

The retailer is asking its landlords for rent discounts of up to 30% and has also asked to delay rent payments, Property Week has reported. 

Jigsaw has reportedly appointed real estate company Colliers International to advise on its property portfolio. It is understood to be in advanced negotiations at a number of regional locations, including The Mall at Cribbs Causeway shopping centre in Bristol.

A Jigsaw spokeswoman said: “Like any good retailer at the moment we are using current market turbulence as a reminder to seek best value from our landlords. We are grateful for the positive and collaborative approach that most landlords appear to be taking currently.”

It comes less than two years after Carphone Warehouse co-founder David Ross stepped in as an adviser and stakeholder with a £20m cash injection.

Ross has since shaken up Jigsaw’s board. Despina Don-Wauchope, a former head of finance at property group Land Securities, was appointed as Jigsaw’s finance director in May. Other newcomers include former TalkTalk executive Richard Walker, and Glasses Direct entrepreneur Jamie Murray Wells, who were appointed as non-executive directors. The board has also appointed brand consultants Isabel Spearman and Silvana Rossi.

In its latest financial report, the parent company of Jigsaw and The Shop at Bluebird, Robinson Webster (Holdings), reported a 2% decline in group turnover to £102m in the year to 29 September. Gross profit margin for the group was 63%, compared with 62.5% in 2017. Its operating loss jumped 1,800% from £500,000 to £9.5m. Underlying adjusted EBITDA fell 85% to £400,000.

Colliers International declined to comment. 

 

 

 

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