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Joules is set to appoint administrators after talks with potential investors collapsed, with up to 1,600 jobs now at risk.
Earlier this month, the company announced it was in advanced discussions with a number of strategic investors regarding financing options for the group.
It spoke with a number of strategic investors, including Tom Joule, to provide a cornerstone investment in an equity raise, and said it would consult with key stakeholders, including suppliers, on its options.
However, its board has now confirmed “these discussions with various parties have not been successful and have now terminated”. Following this, it has announced its intention to appoint administrators from Interpath Advisory to lead the administration.
In a statement, the retailer 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 added it is taking this action to protect the interests of its creditors, and has requested a suspension of trading in its ordinary shares on AIM with effect from today.
It comes as overall trading for the 11 weeks to 30 October 2022 was behind the group’s expectations. Joules said it believes this largely “reflects the challenging UK economic environment which has negatively impacted consumer confidence and disposable income”.
In addition, whilst dresses, menswear and more formal product categories reportedly performed well, larger core categories such as outerwear, wellies and knitwear were impacted by the milder than expected weather in recent weeks.
