Joules Say ‘Positive’ Talks With Next Continue

It is understood talks between retail giants Joules and Next have stalled after the Market Harborough-based firm issued another profits warning.

Next is looking to acquire a stake worth £15m in the Rockingham Road-based company, which has been struggling in recent months.

Sky News has learnt that the two companies are not close to agreeing the terms of a deal, more than three weeks after confirming they were in discussions.

The Joules HQ

City sources say Next had not received sufficient financial information to enable it to make a formal proposal to the Joules board.

There were also doubts that the clothing retail giant would be prepared to proceed with a deal at 33p-a-share or more – Joules’ valuation when the talks were revealed by Sky News earlier this month.

Since then, shares in the company have continued to slide, closing on Friday at just 25.5p.

In a statement on Sunday, a Joules spokesperson said: “Joules continues its positive discussions with Next plc about both adopting its Total Platform services to support its long-term growth plans and a potential equity investment.

“There can be no certainty that these discussions will lead to any agreement, and further announcements in this regard will be made if and when appropriate.”

A deal with Next would require the approval of Joules’ shareholders.

Next declined to comment.