Joules is to file a notice of its intention to appoint administrators following a period of intense talks to secure funding which would have enabled it to continue trading whilst seeking a longer-term solution for its current difficulties. It said that it is taking the action to protect the interests of its creditors,
Joules has been hit hard by falling consumer confidence which has resulted in reduced sales across its much-emulated fashion and childrenswear offer, as well as its Garden Trading brand.
Shares have been suspended in the company which employs some 1600 people at head office and across its c.130 UK stores, as well as some concessions. Joules’ share price had plummeted last week when the business warned that its sales and cash reserves were below expectations.
The business had parted company with its CEO Nick Jones and had recently brought back its founder Tom Joule as product director as a key part of its turnaround strategy. It had simplified its wholesale business operations, was improving its product design and development processes, as well as streamlining its management structure. However, sales for the 11 weeks to October 30th had been below expectations with margins hit by discounting. Online sales had fallen, with in-store sales showing a slight improvement.
“On 7th November 2022, the company announced that it was in advanced discussions with a number of strategic investors to provide a cornerstone investment in an equity raise process,” the company said in a 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.”
Will Wright, Ryan Grant and Chris Pole of Interpath Advisory will be appointed as administrators to Joules Group and Joules Ltd., with Will Wright and Ryan Grant appointed as administrators to The Garden Trading Company Ltd., and to Joules Developments Ltd., as soon as is deemed ‘reasonable practicable’.
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