Joules has drafted in advisors from KPMG to help improve profitability, cash flow and liquidity as the cost of living crisis has leached away consumer demand.
In a note to the City on Monday morning (July 11), the fashion retailer confirmed the appointment of KPMG advisers after a story appeared over the weekend in the Sunday Times. In the update, Joules said it currently had net debt of £21.4m, giving £11.3m headroom within its banking facilities, in line with the Board’s expectations.
“Whilst the Group continues to manage its cash resources carefully over its seasonal borrowing peak, it expects to have sufficient liquidity to manage its working capital requirements over this time,” it added.
Joules said it had made “good progress” on initiatives designed to ease the financial pressure, including focusing on fewer, more profitable wholesale accounts and improving and simplifying the Group’s end-to-end product process to reduce costs and shorten lead times.
The struggling retailer announced at the beginning of May that chief executive Nick Jones would be leaving the business after reporting declining profits in the first half of the year.
Jones had been with the business since 2019 and had overseen a number of issues including stock availability issues during his first Christmas, as well as the impact of the pandemic and consequent store closures.
Jones has also led the founding of the Friends of Joules marketplace and the acquisition of Garden Trading.
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