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Fashion retailer Next has reportedly pulled out of its takeover deal with Joules after talks between the two ended, according to The Independent. Joules was said to be in investment talks with the group last month after reports stated it could sell a 25% stake to its larger rival.
Following the news, shares in Joules have reportedly plummeted by over a third on Tuesday (13 September) after it received confirmation that the deal had collapsed.
According to The Independent, the retailer told shareholders that discussions over the move, which reports claimed could have raised around £15m, have ended.
The brand told The Independent that it will continue work on its turnaround plan to “rapidly improve profitability” by improving its pricing and promotional strategies, as well as focussing on more profitable products and cost control.
However, Joules is said to still be in discussions with Next about using its online platform to sell its clothes. The retailer’s outlook is also said to be unchanged for the current financial year.
A Joules spokesperson told The Independent: “Discussions about Next plc acquiring an equity stake in the group have ceased, however discussions regarding Joules potentially adopting the Next Total Platform in the future will remain ongoing.
“We will continue to assess our ongoing financing requirements and consider alternative options to strengthen our balance sheet.”
Joules and Next have declined to comment at this time.
