Joules, the UK country fashion and homeware brand, is going into administration, putting more than 1,000 jobs at risk.
The retailer said it was suspending trading in its shares following months of financial difficulties.
Only last week it provided an update saying it was in 'advanced discussions' with potential backers, including founder Tom Joule, to save the business.
It had been looking for equity investment as well short-term funding amid disappointing sales with profits expected to be down this year and costs going up.
In a trading update this morning the Market Harborough-based business said: “The board confirms these discussions with various parties have not been successful and have now terminated.
“Regrettably therefore, the board of Joules has resolved to file a notice of intention to appoint Will Wright, Ryan Grant and Chris Pole of Interpath Advisory Limited as administrators to the Company and Joules Limited, and Will Wright and Ryan Grant to The Garden Trading Company Limited and Joules Developments Limited as soon as reasonably practicable.
“The board is taking this action to protect the interests of its creditors.
“In light of the above, the board announces that it has requested a suspension of trading in the company's ordinary shares on AIM with effect from 7.30 am today.”
A proposed deal for Next to take a stake fell through a few months ago and Joules had said under founder Tom Joule’s leadership as product director it had been making product changes which would go some way to securing its future.
The owner of Yorkshire-based car dealership Stoneacre Motor Group had also snapped up £1 million of shares in Joules in recent weeks with reports he was considering a rescue bid.
Only a year ago the business had opened a smart new £20 million HQ in its South Leicestershire home town which Mr Joule had said was a symbol of both the company’s history in the Leicestershire countryside and its designs for future growth.
The 60,000 sq ft building, called The Barn, has capacity for 6-700 people.
Mr Joule started Joules in his home town of Market Harborough in 1989 after buying 80 per cent of the family clothing firm from his father, Ian.
He sold socks, wellies and hats at agricultural fairs and equestrian shows before supplying Cotswolds and seaside shops, then designing his own range of distinctive, branded goods.
The business floated on London’s junior market in May 2016, at a time when sales and profits were growing exponentially.
