Fashion and homewares retailer Next is understood to be in talks to take a 25% share in struggling lifestyle brand Joules.
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. The equity investment would be subject to approval by Joules’ shareholders.
“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, has recently issued a profit warning, stating that the cost of living was impacting sales across its full-price and gardening products, while also seeing its share price falling to an historic low of 33p, down from 144p at the start of the year.