Jigsaw to launch CVA as coronavirus hits sales

Jigsaw is set to launch the insolvency process in a bid to close stores and slash rents on others in a bid to survive, Sky News reported. 

Like many high street fashion brands, Jigsaw was struggling before the pandemic but the forced closure of stores during lockdown and subsequent loss of revenue has left the brand facing losses.

While stores have since reopened, the womenswear brand has been hurt by a lack of demand as customers are travelling less and continue to work at home. 

The retailer operates 75 stores across the UK and employs 900 people. 

Jigsaw said: “The UK retail sector has been struggling for some time as customers of all ages move to the convenience of online shopping and the coronavirus pandemic has further accelerated this.

“We have therefore taken the difficult decision to close a number of our stores and carry out a wider strategic review of our business.”

The retailer would be the latest high street fashion staple driven to insolvency or administration by the ongoing coronavirus crisis. 

On Tuesday, Retail Week revealed that River Island was considering its options ahead of a possible CVA. 

Other brands such as Oasis, Warehouse, Cath Kidston and Laura Ashley have all been forced to close stores and cut jobs during the pandemic.