A Joules store in Nottingham (Mike Egerton/PA)
(Picture: PA Media)Troubled high-end retailer Joules a reported favourite of William and Kate the Prince and Princess of Wales has admitted that it could be forced to adress its creditors in a battle for the survival of the chain.
The retailer, that has more than 130 stores across the UK and Ireland and 1,300 staff, has now admitted that a company voluntary arrangement (CVA) could be a possibility in order to pay debts to its suppliers. It had reported a “significant” loss for the first half of the year in August.
Until last month, when talks collapsed, the business was in advanced negotiations regarding a sale of 25% of the company to high street rival Next for £15 million to help bail it out of liquidity problems.
Joules said that it “continues to make good progress in developing its turnaround plan”.
The plan has focused on driving higher profitability including through better pricing and promotional strategy and focusing on more profitable product categories with shorter time to market.
It also said it continued to make good progress on its “simplification agenda” and “cost management process”.
The retailer added: “As previously announced, the group continues to assess its ongoing financing requirements, including a possible equity raise, to allow the company to strengthen its balance sheet and provide a strong platform to support the turnaround plan.
“Whilst this remains the board’s focus, the company also continues to consider a range of other potential options which may be available to it, where a CVA is one of a number of such alternatives, and notes it has not determined if such alternatives are required.
“A further announcement will be made if and when appropriate,” it said.
In August, the Leicester-based retailer appointed Jonathon Brown as its new boss, replacing Nick Jones.
