Joules has responded to rumours of a potential company voluntary arrangement (CVA) as it continues its turnaround strategy.
The fashion and lifestyle retailer confirmed it is working with Interpath Advisory to assess “certain elements” as part of the development of its plans.
The retailer added that chief executive Jonathon Brown and returning founder Tom Joule are making good progress on the turnaround, which includes driving higher profitability through better pricing and promotions, focusing on shorter lead-time product and optimising its channel mix.
The statement came in response to Sky News reporting that the retailer was “seriously considering” a CVA, which could result in job cuts and store closures.
Joules reiterated that it is assessing its financing options, including a potential equity raise in order to strengthen its balance sheet, aided by KPMG.
Its full-year outlook remains unchanged.
The news came after Joules’ discussions with Next for a potential £15m takeover came to an end.
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