(Mike Egerton/PA)
(Picture: PA Media)Clement autumnal weather has led to a slump in sales of coats and wellies luxury British designer Joules said today as it fought for extra financing to stay afloat.
The brand, which is a firm favourite with Prince William and Kate, Princess of Wales, said trading had fallen behind forecasts in recent weeks amid hotter-than-expected temperatures and a downturn in consumer confidence.
“Whilst dresses, menswear and more formal product categories have performed well, larger core categories such as outerwear, wellies and knitwear have been impacted, in part, by the milder than expected weather, the firm said.
It comes as Joules said it was in discussions to secure an eleventh-hour cash injection to shore up its balance sheet and warned “there can be no certainty that any bridge financing proposal will be agreed.”
The retailer, which operates 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.
“The Company is currently in discussions with Tom Joule and its lender in regard to a bridge financing proposal in order to enable continued progress to be made with the re-financing plans,” the firm said today.
Joules is the latest retailer to face insolvency in the face of soaring cost inflation and a downturn in consumer demand. It comes after mattress business Eve Sleep filed for administration in October and furniture company made.com said it planned to call in the administrators earlier in November.
