Row erupts over deal to save Joules

The spurned suitor of Market Harborough-based Joules, The Foschini Group (TFG), has sparked a row with the retailer’s administrators after it was sold to Next at the eleventh hour.

TFG has reportedly written to Interpath Advisory, which sold Joules to Next, to complain about the way the deal was handled.

TFG’s bid to buy Joules out of administration looked set to go ahead, only for Next to step in at the last minute.

Now, the South African owner of Whistles is threatening to lodge a formal complaint with the Institute of Chartered Accountants in England and Wales (ICAEW) over how Interpath conducted the £34m sale.

The deal with Next saved around 1,400 jobs and 100 of Joules’ 124 outlets in the UK and Ireland.

Sky News says it has learned that TFG has written to lawyers working on the deal suggesting they may have breached rules set out by the Solicitors Regulation Authority. TFG wants its costs reimbursing for its unsuccessful bid.

A spokesperson for Interpath told Sky News: “We stand by the process which was run and reject any notion of unfairness.

“TFG were granted a period of exclusivity in which they had the opportunity to conclude a transaction. Despite our best efforts, they were unable to do so within this timeframe.

“Thereafter, a materially better offer for the business was received, which the joint administrators concluded represented the best outcome for the company’s creditors.

“In line with their statutory duties, they accepted this offer and went on to conclude the transaction in short order, improving the outcome for creditors and preserving circa 1,400 jobs and over 100 stores.”

TFG was unavailable for comment.