Regulator launches investigation into audit of collapsed retailer

The Financial Reporting Council (“FRC”) has launched an investigation into Deloitte’s audit of the 2021 accounts for retailer Joules.

Joules was rescued out of administration by Next in December 2022 in a £34m deal that saved around 1,400 jobs and 100 of Joules’ 124 stores.

Creditors were owed £114m when the stock market-listed business collapsed last November.

The investigation will be conducted by the FRC’s enforcement division, following a meeting of the regulator’s conduct committee.

A Deloitte spokesperson said: “We will co-operate fully with the Financial Reporting Council’s investigation and remain committed to the highest standards of audit quality.”

The audit was managed from Deloitte’s St Albans office.