Joules share price slumps again as it looks to turnaround specialists
Struggling Market Harborough retailer Joules could resort to a company voluntary arrangement (CVA) in order to cut its spiralling costs.
Joules is working with Interpath Advisory on a plan for a CVA that could mean store closures and job cuts – while the firm will push for rent reductions on remaining outlets.
Sky News says that while Joules has not yet formally launched a CVA, it was “seriously looking” at the opportunity.
Joules’ share price tanked again yesterday (Thursday 29) ending the day at just 5p. It started 2022 at a relatively healthy 134p – meaning it has dropped 96.4% in just nine months. The company is now worth just £5.6m on these figures.
Earlier this month, Joules announced that talks with Next about a proposed £15m investment had collapsed.
Meanwhile, non-executive director and founder of Joules, Tom Joule, said he was making a return to an executive role, promising “surprises and delights” as he took on responsibility for product development.
A statement from Joules said: “Joules confirms that its new leadership team, led by Jonathon Brown and supported by Tom Joule in an executive capacity as product director, is making good progress in developing its turnaround plan which focuses on driving higher profitability including through: a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; and optimising the group’s channel mix.
“The company continues to make good progress on its simplification agenda and cost management process.
“Interpath Advisory is assisting the board with an initial assessment of certain elements as part of the development of this turnaround plan.
“As previously announced on 13 September, the group continues to assess its ongoing financing requirements, including a possible equity raise, to allow the company to strengthen its balance sheet. KPMG continues to support the group on its medium-term funding.
“The group’s outlook for the full year remains unchanged.”
Joules employs around 1,000 people in 130 stores.