Clothing firm Joules has been rescued in a £34m joint venture by its founder Tom Joule and Next.
The deal means around 133 people have been made redundant weeks before Christmas, but some 1,450 staff will keep their jobs. The deal includes saving around 100 Joules shops, but 19 have closed for good.
H&H reported last month that Joules, which has strong ties with the equestrian world, had entered administration. Will Wright, Ryan Grant and Chris Pole from Interpath Advisory were appointed joint administrators of Joules Group plc and Joules Limited on 16 November.
But on 1 December, the joint administrators confirmed the sale of the majority of the business and its assets to the newly formed company, set up by Mr Joule and Next.
A statement from the administrators said that it is “with regret” that it has made the 133 redundancies, and it will be providing support to those affected “as a matter of priority”.
The new company acquired Joules out of administration for a total cash consideration of £34m, and Next has also bought the current Joules head office for £7m. Next will own 74% equity of the company, and Mr Joule the remaining 26%.
“After three years away from the operational side, I’m truly looking forward to inspiring teams with clear direction to excite and recapture the imagination of the customer again,” said Mr Joule.
“Our customers have always trusted us to lead, not follow, with products that reflect their lifestyle. It’s important that we live up to the high standards they desire in design, quality and, with Next’s total platform delivery and customer support proposition, the service they expect.
“I’m so pleased that we have been able to strike a deal that protects the future of the company for all its loyal customers, its employees and also for the town of Market Harborough, which have been so central to Joules’ success.”
Mr Wright, head of restructuring at Interpath Advisory and joint administrator, added: “Following a highly competitive process, we are pleased to have concluded this transaction which secures the future of this great British brand, as well as safeguarding a significant number of jobs.
“To have achieved this in such a short timetable is testament to the support we’ve received from employees, suppliers and other key stakeholders throughout the administration process, so we’d like to express our profound thanks to everyone involved.”
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