Next Ends Investment Talks With Joules

Market Harborough-based fashion retailer Joules says it is no longer in talks with Next about a potential investment worth £15m.

Shares in the firm, which employs around 400 people from its Rockingham Road HQ, plunged by 45% yesterday, when emerged there would be no deal between the two Leicestershire-based retailers.

Joules, which has been struggling over the last year, with the cost of living crisis hitting sales, has not given a reason for the end of negotiations, buts says it is still in discussions about using Next’s online platform to sell its clothes.

The firm has also revealed founder Tom Joule, currently a non-executive director, would return to an executive capacity, to oversee its product offer.

The Joules HQ in Market Harborough

Joules said: “Discussions about Next plc acquiring an equity stake in the group have ceased, however discussions regarding Joules potentially adopting the Next Total Platform in the future will remain ongoing.

“The group continues to develop and execute its strategy and turnaround plan, which focuses on driving higher profitability through: a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; optimising the group’s channel mix; and a continuing strong focus on cost control. The group’s outlook for the full year remains unchanged.

“The group continues to assess its ongoing financing requirements and is considering alternative options, including a possible equity raise, to allow the company to strengthen its balance sheet. A further announcement will be made if and when appropriate.”