Investors in talks over Jacques Vert rescue

A consortium of retail investors is in talks to stitch together a rescue deal for a cluster of womenswear brands, including Jacques Vert and Windsmoor, backed by one of the fashion industry's most prominent figures.

Sky News understands that a trio of businessmen, including Sandeep Vyas and Haseeb Aziz, are attempting to tie up an agreement to buy Style Group Brands through a pre-pack administration.

A deal would preserve a significant chunk of the roughly 1900 jobs at the retail concessions operator, whose brands have a presence within department stores such as Debenhams (Frankfurt: D2T.F - news) and House of Fraser.

However, sources warned on Tuesday evening that an unspecified number of outlets would close under the investors' plan, prompting some job losses.

The consortium, which is being fronted by the former Jaeger owner and British Fashion Council boss Harold Tillman, is understood to have been informed that it needs to conclude a deal by the end of this week.

KPMG, which is advising on the sale process, is understood to be preparing to place Style Group Brands into administration within days but would be expected to salvage more of the jobs if it can do so by using the so-called pre-pack method, which allows a new owner to shed some of a company's liabilities.

The prospective acquirers of the company, who have experience of UK retailing at companies such as SuitSupply, are said to have no more than a 50-50 chance of completing a deal.

"If it's going to happen, it has to happen this week," said one insider.

Sky News revealed last week that KPMG was racing to find a new owner willing to buy the company or its assets , with current backer Sun European Partners unwilling to continue funding the business.

An administration process would make Style Group Brands the latest casualty of a tough business environment for high street retailers.

The company‎ trades from more than 1,850 outlets in 470 separate locations in the UK, Europe and Canada, and employs approximately 1,900 people - the majority of whom are based in store concessions.

Style describes itself as the UK's largest womenswear concession retailer, owning brands which also include Dash, Eastex and Precis.

The company was formed from the merger of Jacques Vert and Irisa Group‎, and its brands are also sold through John Lewis's online operation.

The sale process comes amid a flurry of auctions of women's fashion brands.

The parent company of Oasis and Warehouse has been put up for sale, while Jaeger recently changed hands after falling into administration.

Hobbs is also on the market, with shareholders in LK Bennett recently pumping millions of pounds into the business to fund expansion plans.

Clothing retailers are facing growing pressure from the impact of inflation, which will lead to substantial price hikes, and concern about the consumer spending climate.

Other costs such as those associated with the national living wage and apprenticeship levy are also posing a significant challenge on the high street.
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Sun European‎ and KPMG declined to comment, while none of the potential new investors, nor Mr Tillman, could be reached.