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British lifestyle brand Joules has announced it has successfully agreed to add £15m to an existing credit facility with Barclays Bank, due to the coronavirus crisis.
The retailer also said it has taken a “significant” number of mitigating actions to conserve cash throughout this period of significant “global macroeconomic uncertainty”. These actions continue to involve the cooperation of many of the group’s key stakeholders including stock suppliers, non-stock suppliers, landlords, and employees.
Joules said its board believes that these “proactive” actions, in combination with the recent equity placing and increase in the group’s RCF, has “significantly strengthened Joules balance sheet”.
The group’s net debt position at 19 April 2020 was £6.9m with £43.1m of available headroom.
In its operating update, Joules announced its e-commerce channel remains open for business as its online channel remains “strong” and customer demand is “running ahead of the group’s revised expectations.”
The retailer also announced it has raised nearly £35,000 for NHS Charities Together with the launch of its ‘Rainbow Edit’ collection.
In addition, Joules said it has been able to utilise its supply chain to support local Leicestershire health services and key partners through the provision of personal protective equipment (‘PPE’) with a donation of approximately 50,000 masks sourced so far.
Nick Jones, chief executive officer of Joules, said: “The completion of the additional facility with Barclays Bank plc provides Joules with further liquidity to navigate these challenging times and positions the business to continue to progress its strategic growth plans following the current period of significant disruption.
“Our e-commerce sales over recent weeks continue to demonstrate the strength of the Joules brand and the loyalty of our customer base. We know that further challenging times are ahead, but we are confident that, with the continued support of our colleagues, customers and the wider Joules community of suppliers and partners, Joules is well positioned to manage these challenges.”
