Fashion retailer Jack Wills has reportedly appointed accountancy firm EY to scrutinise and advise on its financial position.
According to Sky News, EY – who are led by HSBC – have been brought in to assess its finances and help negotiate revisions to its borrowing covenants.
The news comes just weeks after the chain received a £10m cash injection from an Italian family office which invests in its majority shareholder, BlueGem Capital Partners. BlueGem is also said to have matched the £10m investment. The identity of the Italian investor is said to be made clear once recapitalisation documents are filed with Companies House.
Jack Wills has had a challenging few years; in 2016 it posted a 41% drop in profit which prompted it to be sold to BlueGem. Then, in August 2018, its founder Peter Williams was ousted by the new owners following an argument between the two.
Jack Wills currently has 90 stores, with four understood to have opened within the last week.
Retail Sector has approached Jack Wills and EY for comment.