Jigsaw owner tried to turn HQ into luxury flats
Tycoon David Ross in attempt to cash in on property deal as fashion chain floundered
THE owner of Jigsaw tried to cash in by converting the fashion brand’s headquarters into a lucrative block of luxury apartments while the company was struggling financially, the Mail can reveal.
David Ross, who became Jigsaw’s controlling shareholder two years ago, sought permission to change the retailer’s head office in Kew in London into a complex of 31 upmarket flats. He lodged
his application with the local council shortly after purchasing the property in a £10m deal from the retailer’s founder John Robinson.
His bid was rejected by council officials because of concerns about parking, noise and bin collections. Ross, a colourful character best known as the cofounder of Carphone Warehouse, has an estimated fortune of £642m. His redevelopment plans were lodged just before an extraordinary mass boardroom exodus at Jigsaw.
His property investment firm, Kandahar, paid Robinson’s property company £10m for the buildings in Mortlake Road, Kew, in December.
He then swiftly lodged plans to convert the office into 31 one and two-bedroom apartments, documents show. However his application for prior approval – a form of planning permission where some but not all aspects of a scheme are assumed to be acceptable – was rejected by Richmond council in February. Ross could appeal against the decision or lodge a fresh application with amendments.
Flats in the area where Jigsaw’s offices are based have sold for an average of £549,613 each over the past year, according to property website Zoopla, meaning that at those prices, the development could end up being worth in excess of £17m if it is successfully redeveloped. However, there is considerable uncertainty over house prices due to the coronavirus.
Jeremy Leaf, a London-based estate agent and property expert, said: ‘As a general rule of thumb, Kew is a good area and accommodation there is very much in demand.
‘It sounds like this property will have more value as a residential development than an office, but of course that is subject to the owners getting planning consent. But even the smallest one or two-bedroom flats in an area like Kew should be worth something in the range of £400,000 to £500,000, assuming there are no major hiccups.’
A spokesman for Jigsaw last night did not respond to questions from the Mail about the planning application, including what plans were in place to ensure the retailer has a suitable alternative building for its HQ if the apartment plans are approved.
However, she said: ‘Like all businesses in the retail sector, we’re determined to reduce our costs where we can to make sure we’re fit for the future. Jigsaw is a muchloved heritage brand and we are fully focused on getting through this difficult trading period and on reopening our stores when it is safe to do so.’
The Mail revealed yesterday that seven directors have left the board this year, including former interim boss Toby Foreman and former finance director Despina Don-Wauchope.
Other directors who have gone include former Talk Talk executive Richard Walker, Glasses Direct founder James Murray Wells, brand consultant Silvana Rossi and Isabel Spearman, a former adviser and stylist to Samantha Cameron, the wife of former Prime Minister, David.
Jigsaw has insisted the boardroom exodus was part of efforts to ‘streamline’ the business, as it grapples with disruption from the coronavirus. Vacating almost every chair in the boardroom is a highly unusual response, however, to a crisis and has not been the approach taken at rival retailers.
Covid-19 has forced it to shut its stores, though its online operation is still trading. It was in trouble before the pandemic, making a loss of £10.5m in the year to September 29, 2018.