UK retailer Joules set to file for insolvency

Bloomberg

Joules Group Plc is set to file for insolvency after the British retailer failed to secure bridge financing or raise equity, putting around 1,600 jobs at risk.
The clothing chain, known for its colourful coats and Wellington boots, said it will appoint Interpath Advisory as administrators to protect the interest of creditors. Shares have been suspended.
Joules warned last week that it would struggle to repay a £5 million ($5.9 million) loan due at the end of this month amid weaker-than-expected sales and reduced cash flow. Founder Tom Joule was among investors in talks for the equity raising and was in separate negotiations for bridge financing.
It would be the second major UK retailer insolvency in the space of a week after Made.com Group Plc brought in administrators and was sold to Next Plc. Joules’ talks with Next to become a minority shareholder with a potential equity investment of about £15 million fell through in September.
Joule said that the business had become too complex and the model isn’t aligned with the current difficult trading environment. He also indicated he’d like to remain involved at Joules going forward, raising the question as to whether he might seek to buy the company out of administration.
“It is my hope to be able to continue to play an important role in creating Joules products for our customers that reflect our brand and values,” said Joule.
It’s uncertain whether the retailer will gain interest from rivals as it enters insolvency, with Next or potentially the acquisitive Frasers Group Plc possible candidates.