Joules Say ‘Positive’ Talks With Next Continue
Written by HFM News on 30th August 2022
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.
