Next pulls out of Joules takeover talks as founder Tom Joule returns

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Joules has confirmed that discussions with Next to take an equity stake in its business have come to an end.

Tom Joule, Joules

Founder Tom Joule will return to the business in an executive capacity

The retailer said that conversations to potentially adopt Next’s Total Platform in the future, however, are ongoing.

In the meantime, Joules’ products will continue to be sold through Next’s Label business.

The news comes at the same time as new chief executive Jonathon Brown takes the reins at Joules.

The retailer has also announced that founder and non-executive director Tom Joule will return to the business in an executive capacity to lead on its “renewed product development process for the forthcoming seasons”.

In his new role, Joule will oversee the company’s total product offer “to ensure it surprises and delights” customers.

Joules’ turnaround strategy is ongoing, focusing on driving profitability through better pricing and promotion, and building up its product offer with shorter lead times.

The retailer said in a statement to the market today: “The group continues to assess its ongoing financing requirements and is considering alternative options, including a possible equity raise, to allow the company to strengthen its balance sheet. A further announcement will be made if and when appropriate.”