Jack Wills owner canvasses buyer interest

BlueGem is seeking the “right kind of buyer” for troubled Jack Wills, but would retain a minority stake, Drapers reported.

A document prepared by advisor KPMG has been circulated to stimulate interest in Jack Wills.

It reads: “The current investors believe the business can benefit from being part of a larger platform and would welcome the opportunity to retain a minority stake, which allows them to realise value from their investment to date.”

It highlighted various initiatives to restore Jack Wills’ profitability including the possible closure of its Covent Garden branch, where the lease expires in March next year, and the planned closure of US branches. It also flagged that savings can be made by cutting head office salaries.

One company has already expressed interest in Jack Wills, according to Drapers.

Jack Wills said KPMG was asked to review it and look at future opportunities. A spokeswoman said: “In the meantime, management remains focused on its strategy of new product development, improving margins and driving cost efficiencies, which is already reaping benefits.”

News of the efforts to encourage buyer interest follows reports that Jack Wills is burning through a £28m cash fillip from BlueGem and may need more money or to restructure before the end of the summer.

Jack Wills made a pre-tax loss of £29.3m on revenues of £139.5m in its last reported year to January 31, 2018.