Rescue talks fail for popular clothing brand with strong equestrian ties
H9EA6B The Joules stall at the Royal Norfolk Show in the Showground , Norwich , Norfolk , England , Britain , Uk
(Image credit: Alamy Stock Photo)
The future looks bleak for fashion and home retailer Joules, which holds deep ties with the equestrian world and employs around 1,600 staff, after rescue talks failed.
Joules announced this morning (14 November) that its board has resolved to file a notice of intention to appoint administrators.
Joules in its current guise traces its journey back to 1989, when Tom Joule bought out 80% of the family firm Joule & Sons and started selling clothing on a stand at a country show in Leicestershire. From there, the business grew hugely. It has around 130 stores in the UK alongside its online arm, is stocked in leading stores and has stands at major equestrian events.
But the economic climate and unusually warm autumn have both had a significant impact on trading, with the 11 weeks to 30 October “behind the group’s expectations”.
“The [Joules] Group believes this, in large part, reflects the challenging UK economic environment which has negatively impacted consumer confidence and disposable income,” stated a business update last week (7 November).
“In addition, whilst dresses, menswear and more formal product categories have performed well, larger core categories such as outerwear, wellies and knitwear have been impacted, in part, by the milder than expected weather.”
Although that update said that the company had made “good progress” in its turnaround plan, news broke today that it had moved to appoint administrators to Joules and three connected companies. Trading in Joules shares has also been suspended.
“On 7 November 2022, the company announced it was in advanced discussions with a number of strategic investors to provide a cornerstone investment in an equity raise process,” said this morning’s statement.
“The company also announced it was in discussions regarding a bridge financing proposal in order to enable continued progress to be made with the re-financing plans referred to above. The board confirms these discussions with various parties have not been successful and have now terminated.
“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 is taking this action to protect the interests of its creditors.”
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