Jack Wills hit by falling sales
By Sarah Wood | 2nd July 2019
Fashion retailer Jack Wills is thought to heading for financial trouble, after falling spring sales.
The retailer, which has stores in Cheltenham and at Gloucester Quays, is rapidly using up a £28 million cash injection from its private equity owner BlueGem, as reported by Retail Gazette.
Reports say that the company, once the darling of the high street, may need another cash injection or a restructuring scheme before the end of summer.
Spring and summer sales have been affected by poor weather, forcing the retailer to discount by as much as 50 per cent across its ranges.
Earlier this year, Jack Wills revealed a pre-tax loss of £29.3 million for the year to 31st January. It also made a loss of £7.5 million, compared to a profit of £6.3 million in the previous year. Sales have fallen by 1.1 per cent to £129.3 million.
Since taking control of Jack Wills in 2016, BlueGem has spent £18 million on the retailer and arranged an additional £10 million lifeline from Italian businessman Giorgio Girondi. The company also has a £25 million line of credit from HSBC.
Earlier this year, Jack Wills' lenders - led by HSBC - reportedly called in advisers from financial services company, EY, to assess the retailer's financial position.
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