Joules nearing collapse as 1,600 jobs at risk
British fashion retailer Joules has today announced that it intends to appoint administrators, in a move which sees nearly 1,600 jobs at risk.
The company said that negotiations with strategic investors and conversations regarding a bridge financing proposal were unsuccessful. The retailer’s board said the decision to appoint administrators was made to protect the interests of its creditors.
Joules has also suspended trading of its shares.
Last week Joules said it was assessing its options including raising equity and a possible Company Voluntary Agreement (CVA) after its sales fell behind expectations, with shares in the company falling 24.9% last Monday morning.
Joules was founded in 1989 when its founder Tom Joule began selling clothing at a Leicestershire country show. The retailer is famous for its wellies and waterproofs and owns 130 stores as well as operating online.
The company cited milder weather and a challenging economic environment as reasons for its lower-than-expected sales.
The Joules Group also operates the online-only Garden Trading Company.
It becomes the latest retailer to suffer from the squeeze of the cost-of-living crisis, as last week online store Made.com was purchased by Next after it too went into administration. Meanwhile, Marks and Spencer warned of a ‘gathering storm’ in the retail market.
Joules said it will make further announcements in due course.