Joules has filed a notice of intention to appoint administrators after last-ditch efforts to secure emergency funding collapsed.
The beleaguered fashion business, which operates around 130 stores and employs more than 1,600 people, admitted this morning that talks with “various parties have not been successful and have now terminated”.
It plans to appoint Interpath Advisory to handle the administration process for Joules and The Garden Trading Company, which it acquired for £9m in February 2021.
The board of Joules said it was appointing administrators “to protect the interests of its creditors”.
Trading in Joules’ shares on AIM will be suspended and the retailer said it would make further announcements “in due course”.
The move comes a week after Joules warned that it was exploring a number of options, including a company voluntary arrangement, as trading worsened.
It said sales during the 11 weeks to October 30 came in “below expectation” as a result of “the challenging UK economic environment, which has negatively impacted consumer confidence and disposable income”. Milder weather also hit sales of knitwear and outerwear.
Joules had hoped to secure a cash lifeline after entering “advanced discussions with a number of strategic investors”, including its founder and product director Tom Joule.
The retailer was previously in discussions with Next over the purchase of a sizable equity stake, but the high street giant pulled out of those talks in September.
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