Joules will file for bankruptcy in England, 1,600 jobs threatened



Published on

14 Nov 2022

British clothing company Joules is set to file for bankruptcy after running out of cash as the cost of living crisis prompted consumers to cut spending in the face of inflation.

Joules website

In a statement Monday, Joules said it failed to raise funds from investors and failed to secure a bridging loan.

“With regret”, the board of directors has announced its intention to appoint three directors of the firm Interpath Advisory Limited, in order to “protect the interest of creditors”.

The company currently employs 1,600 people, whose jobs are threatened, and has 132 stores, a spokesman told AFP.

The action was suspended on the London market.

“Joules is the latest victim of the UK retail crisis, in a context of purchasing power crisis,” commented Victoria Scholar, an analyst at Interactive Investors, who recalled that last week the company furniture e-commerce, also went bankrupt.

Inflation has reached 10% in the country and rising costs are weighing on business activity and indicators of confidence in the economy.

The UK saw its gross domestic product shrink in the third quarter and the Bank of England is predicting a recession that could be the longest known in the country.

Susannah Streeter, an analyst at Hargreaves Lansdown, points out that the brand specializing in outdoor and countryside clothing, and famous for its colorful rain boots, may also have suffered from unusually warm weather this autumn but “Joules would have better weathered this storm if its product line had been more diverse and if its design teams had followed trends better.”

London, Nov 14, 2022 (AFP)

All rights of reproduction and representation reserved.
© 2023 Agence France-Presse
All the information reproduced in this section (or on this page as the case may be) is protected by intellectual property rights held by AFP. Consequently, none of this information may be reproduced, modified, redistributed, translated, commercially exploited or reused in any way whatsoever without the prior written consent of AFP. AFP cannot be held responsible for delays, errors, omissions which cannot be excluded, nor for the consequences of actions or transactions carried out on the basis of this information.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *