Upmarket fashion chain Joules has become the latest victim of the cost of living crisis hitting retailers.
The clothing company, which has 132 shops, including at the Metrocentre, Alnwick and inside Rutherfords of Morpeth, has appointed administrators after failing to secure emergency investment to keep the business going. The brand is said to have held emergency talks with investors after warning it may not be able to repay a £5million loan by the end of the month.
As well as high street shops, Joules also had hundreds of stockists in the region, including Dobbies, Peter Barrett's and Heighley Gate garden centres and city centre department store Fenwick.
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Joules, which was founded by Tom Joule in 1989, said last week that recent sales had been weaker than expected. The business employs around 1,600 people, whose jobs will be at risk of being axed.
The Leicestershire-based firm started out selling clothes at country shows. It sells clothing and homeware products inspired by the countryside and is most famous for its posh wellies. The retailer was said to have been in talks with High Street giant Next over the summer, but discussions ended in September. Last week, Next bought furniture retailer Made.com after it fell fell into administration, leading to hundreds of job losses.
Mr Joule said he had started the firm with "one man, one tent and a lot of enthusiasm". Announcing disappointing trading last week, Joules said this was largely due to "the challenging UK economic environment which has negatively impacted consumer confidence and disposable income". It also said that sales of "outerwear, wellies and knitwear" had been hit by milder-than-expected weather.
On Monday, Mr Joule said in a statement: "Today is a deeply disappointing day for Joules, and a sad day for me personally. However, we recognise our business has become too complex and our model today is not aligned to succeed in the current, tough trading environment. It is my strong belief that Joules remains a desirable, differentiated brand that, with the right model and structure, can thrive again."
As well as the Joules stores and online business, the Joules Group also ran the online-only Garden Trading Company.
Administrators said that the business will continue to trade and shops will stay open while they “assess options for the business, including exploring the possibility of a sale as a going concern”. Will Wright, head of restructuring at Interpath Advisory and joint administrator, said: “Joules is one of the most recognisable names on the high street, with a unique brand identity and loyal customer base. Over the coming weeks, we will endeavour to continue to operate all stores as a going concern during this vitally important Christmas trading period while we assess options for the group, including a possible sale.
Joules said all stores and concessions will operate as normal, while online orders will also be delivered as usual. Customers will be able to continue using valid gift cards, the store added, but no new ones would be sold.
Many retailers have been struggling as consumers cut their spending in the face of the soaring cost of living. Retailers who have gone into administration in 2022, include:
Made.com: Next bought collapsed Made.com out of administration for £3.4million last week, but around 400 staff have still lost their jobs. Next only bought Made's brand, website, intellectual property and customer database. Just 74 staff will stay on to help administrators wind down the business.
Studio Retail Group: The Lancashire-headquartered online retailer, whose largest shareholder is Mike Ashley ’s Frasers Group, went into administration in mid-February. Frasers Group, which owns House of Fraser, Sports Direct and Evans Cycles, bought the digital retailer with a promise of spending £100m on the business and saving around 1,500 jobs.
Sofa Workshop: High Street retailer Sofa Workshop, which has shops as well as selling online, collapsed earlier this year with the loss of 77 jobs. Appointed administrator PwC said supply chain and transport costs had contributed to trading losses and outweighed ‘significant revenues’.
T M Lewin: The shirt maker was said to be a victim of lockdown dressdown when it fell into administration for the second time this year. It had previously been rescued by US-owned Torque Brands and switched to an online-only model in the summer of 2020. All shops closed, including one n Newcastle. Will Wright of appointed administrator Interpath Advisory said: “Over the pandemic, men’s apparel - and formalwear in particular - has been one of the hardest hit parts of the retail sector, as work-from-home measures and restrictions on events meant demand for suits and formal tailoring waned.”
In addition, retailer Marks & Spencer announced another round of store closures over the next five years as part of a national shake-up. The chain said last month that it plans to close a further 67 stores that have "lower productivity". The closures are part of 110 that had previously been announced, but the 67 confirmed indicate plans have been accelerated.
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