High Street giant Next is reportedly in talks to buy fashion brand Joules. The company, which was regarded as a firm-favourite of the Duchess of Cambridge, issued a profit warning earlier this year.
But, after the news of Next's possible acquisition emerged yesterday, shares in the brand rose to 44p. This was 11p higher than they started the day.
It was reported Next would be looking at spending around £15 million for a stake in the business. Reports suggest Next would be looking at acquiring 25% of the firm.
Joules has approximately 130 branches across the United Kingdom. It employs around 1,000 people.
“Joules confirms it is in discussions with Next about a potential equity investment raising proceeds for Joules of circa £15m at no less than Joules’ current market price, which would result in Next becoming a strategic minority shareholder in the group,” the company confirmed in a statement to the Guardian on Monday.
“The equity investment would be subject to approval by Joules’ shareholders. There can be no certainty these discussions will lead to any agreement.”
Next, which sells Joules products on its website, could host the online arm of the retailer should the move go ahead. While its online operation, warehouse, distribution and logistics would use Next’s services, Total Platform, to run its retail websites and back-end operations.
“Joules confirms that it is in discussions with Next about adopting its Total Platform services to support the group’s long-term growth plans,” the company said.
Joules first began life as a market stall in Leicestershire run by Thomas Joule. Known for its colourful wellies, it started in 1989 at a country fair.
