LONDON (Reuters) -The board of British clothes firm Joules plans to nominate directors after failing to discover a new investor, changing into the most recent retailer to face collapse as buyers tighten their belts.
Joules tried to safe new financing final week after a light autumn hit gross sales of coats, Wellington boots and wooly jumpers nevertheless it stated on Monday that talks had failed and it intends to nominate directors from Interpath Advisory.
Britain’s purchasing streets are struggling as hovering family payments squeeze discretionary spending and firm insolvencies have hit their highest stage for 13 years, information confirmed final month.
On-line furnishings vendor Made.com has been the highest-profile casualty thus far, appointing directors final week, leading to 400 job losses.
Joules employs 1,600 folks and has 132 outlets in Britain and Eire.
The retailer was already in a weak place earlier than the patron downturn and unseasonably heat climate, says Hargreaves Lansdown analyst Susannah Streeter, harm by old-fashioned designs and an excessive amount of discounting.
“The Joules model continues to be robust and, although it would want a contemporary twist to assist it survive long run, there’s more likely to be vital curiosity within the title and the mental property,” Streeter stated.
Joules had hoped that rival Subsequent, which ended up shopping for the Made.com model final week, would spend money on the corporate to assist with its turnaround however Subsequent pulled out in September.
Shares in Joules, which is listed on the AIM junior market, will probably be suspended and an additional announcement will probably be made in the end.
The corporate’s worth peaked at 440 million kilos ($519 million) in mid-2018.
($1 = 0.8482 kilos)
(Reporting by Sarah YoungEditing by James Davey and David Goodman)
