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PRIVACY
Retail & Consumer

Joules shares dive again as cash problems continue

Joules said it was in 'advanced discussions' with potential backers, including founder Tom Joule

Tom Joule could inject cash into the struggling Joules business(Image: PA)

Shares in troubled Joules were down more than a fifth today as the business warned that sales and cash reserves were down on expectations.

The values of shares in the fashion brand dropped to around 10.5p today (Monday) – vastly down on a two-year high of 300p in June 2021.

The business – based in Market Harborough in Leicestershire – has been battling disappointing sales with profits expected to be down this year amid rising costs and tighter consumer spending.

A proposed deal for Next to take a stake fell through a few months ago and Joules said it was still not ruling out a possible CVA to cut costs.

Joules also said it was also in “advanced discussions” with a number of potential investors, including founder Tom Joule.

Under Mr Joule’s leadership as product director it said it has already put a new product design and development process in place to step up the quality and design of its fashion and homewares ranged.

In a market update Joules said the turnaround strategy was paying off, including simplifying its wholesale business, withdrawing from the EU and US, putting in a leaner leadership structure – chief executive Nick Jones recently left the business – and changes to the way it sources goods.

But sales for the 11 weeks to October 30, it said, had been behind expectations with profit margins taking a hit due to discounts.