Carphone Warehouse founder to invest £5m in Jigsaw

Carphone Warehouse co-founder, David Ross, is reportedly investing about £5m in Jigsaw, which will result in him becoming the fashion retailer’s majority shareholder, according to Sky News. 

The multi-million pound investment comes seven years after Ross’ first cash injection, and it is understood that this financing will see him replace Jigsaw’s founder John Robinson – who founded the business in 1970 – as the controlling shareholder. 

Some weeks ago, it was also revealed that Jigsaw’s chief executive, Hash Ladha, will be stepping down from his role in the summer after just 15 months. The retailer is said to be in the process of scouting for his replacement. 

During the pandemic, the loss-making retailer had to close unprofitable stores and seek rent reductions from landlords, as were most high street chains. 

It is understood from a source close to Jigsaw, the new funding would provide a more resilient long-term financial foundation for the company and will entail “a significant balance sheet reorganisation and debt reduction”.

The capital will be used in part to enhance the brand’s online presence and improve fulfilment capability, among other infrastructure investments.

Government increases to employers’ national insurance contributions, which began at the start of this month, are creating new challenges for high street retailers who managed to stay afloat during the Covid-19 pandemic.

Jigsaw has been approached for comment.