Lifestyle retailer Joules has filed for administration after failing to secure additional investment following a break down in talks with potential investors.
On 7 November 2022, the Joules announced it was in advanced discussions with a number of strategic investors to provide a cornerstone investment in an equity raise process. Joules also announced it was in discussions regarding a bridge financing proposal in order to enable continued progress to be made with the re-financing plans referred to above.
The Board confirms these discussions with various parties have not been successful and have now terminated.
In a statement, Joules said: “Regrettably therefore, the board of Joules has resolved to file a notice of intention to appoint Will Wright, Ryan Grant and Chris Pole of Interpath Advisory Limited as administrators to the Company and Joules Limited, and Will Wright and Ryan Grant to The Garden Trading Company Limited and Joules Developments Limited as soon as reasonably practicable.
“The board is taking this action to protect the interests of its creditors. In light of the above, the Board announces that it has requested a suspension of trading in the Company’s ordinary shares on AIM with effect from today.”
Prior to this announcement, Joules said its recent trading has been behind the Group’s expectations, reflecting the challenging UK economic environment which has negatively impacted consumer confidence and disposable income.
Furthermore, fashion and homewares retailer Next was previously understood to be in talks to take a 25% share in the brand
In a statement, Joules said: “Joules confirms that it is in discussions with Next about adopting its Total Platform services to support the group’s long term growth plans. Additionally, in conjunction, Joules confirms it is in discussions with Next about a potential equity investment raising proceeds for Joules of around £15m at no less than Joules’ current market price, which would result in Next becoming a strategic minority shareholder in the group.
“There can be no certainty these discussions will lead to any agreement. A further announcement will be made if and when appropriate.”
Joules, which has a partnership with sofa retailer DFS on an exclusive range as a licensing partner, also recently issued a profit warning, stating that the cost of living was impacting sales across its full-price and gardening products.
