Jack Wills sale nears as Ashley and Day circle

High street billionaires Ashley and Day are the last two bidders left for the embattled fashion retailer which is hovering on the brink of administration, according to Sky News.

Ashley’s Sports Direct and Day’s Edinburgh Woollen Mill Group are both looking to snap up Jack Wills, which was put up for sale by its owner investment firm BlueGem in July.

The firm have been searching for a buyer for the brand after it burned through a £28m cash fillip in the first half of the year and appeared to be headed for restructuring or possible administration.

A source close to the process told Retail Week that a decision on the bids was “imminent” and suggested deal could be concluded as early as this evening or over the weekend. However, a source close to Jack Wills insisted a decision was more likely to come early next week. 

Whichever of the two high street tycoons end up with Jack Wills, a restructuring of the business is said to be “inevitable”. This could in turn lead to possible job losses.

Jack Wills’ currently employs some 1,800 staff across a 110-strong store estate.

The struggling retailer made a pre-tax loss of £29.3m on revenues of £139.5m in its last reported year to January 31, 2018 and joins a long list of retailers which have struggled in the first half of the year.

Ashley’s interest in purchasing the failing retailer may come as something of a surprise to the City, following Sports Direct posting its full-year results last week.

The retail group reported a 6% fall in underlying EBITDA to £287.8m in results that were published more than 10 hours after they were due on Friday.

Earlier last month, Day’s Edinburgh Woollen Mill Group – which owns retailers such as Peacocks, Jaeger and Austin Reed, amongst others – snapped up struggling womenswear brand Bonmarché.