Joules says turnaround plan is ‘going well’ amid CVA rumours
The response came after Sky News reported that Joules is working with Interpath Advisory on a company voluntary arrangement (CVA) that could lead to store closures and job cuts, if approved.
Lifestyle retailer Joules has confirmed that it has appointed Interpath Advisory to help the company with its turnaround plan.
The retailer confirmed the news in a statement released yesterday (29 September) which revealed that the financial advisors are “assisting the board with an initial assessment of certain elements as part of the development of this turnaround plan”.
The response comes after Sky News reported that Joules was reportedly working with Interpath Advisory on a company voluntary arrangement (CVA) that could lead to store closures and job cuts, if approved.
Sky News added that Joules had not formally launched a CVA or restructuring plan but was “seriously looking” at the possibility.
However, Joules said in the statement that its turnaround plan “focuses on driving higher profitability” and that the company “continues to make good progress on its simplification agenda and cost management process”.
Earlier this month, Joules said it was no longer in talks with Next about a potential acquisition of an estimated £15m of its shares.
In July, the retailer appointed KPMG debt advisory to help improve profitability, cash flow and liquidity after reporting a net debt of £21.4m in the financial year to 30 May 2022.
Joules said: “Joules confirms that its new leadership team, led by Jonathon Brown and supported by Tom Joule in an executive capacity as product director, is making good progress in developing its turnaround plan which focuses on driving higher profitability including through: a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; and optimising the group’s channel mix.
“The company continues to make good progress on its simplification agenda and cost management process. Interpath Advisory is assisting the board with an initial assessment of certain elements as part of the development of this turnaround plan.”
It added: “As previously announced on 13 September, the group continues to assess its ongoing financing requirements, including a possible equity raise, to allow the company to strengthen its balance sheet. KPMG continues to support the group on its medium-term funding.”
