Joules tanks as insolvency talk spooks market
Share tanked over 32 per cent this evening for Joules after reports that the beleaguered retailer was weighing up insolvency options.
As first reported by Mark Kleinman for Sky News, the British lifestyle brand is working with Interpath Advisory on a company voluntary arrangement (CVA), which would allow the firm to renegotiate liabilities, but could trigger a tide of job losses and shop closures.
Joules confirmed this afternoon that it was being advised on its turnaround plan, which it said it was making “good progress” with.
However, this didn’t stop shares tumbling, trading as low as 5p, and adding to the stock’s 96 per cent nosedive in the year to date.
Joules said in August that it was aiming to secure an equity investment of about £15m, and was also in talks with the retail giant Next over a potential rescue deal.
The company has faced intensified pressure on margins in recent months as consumer appetite slows and macroeconomic headwinds batter profits.