Next has bought Joules out of administration in a rescue that saves 1,450 jobs and 100 high street stores.
The retail giant teamed up with Joules founder Tom Joule, who set up the collapsed ‘yummy mummy’ fashion firm in 1989, to secure the £34million deal.
But 24 stores will close – 19 immediately – with the loss of around 150 jobs.
Rescue deal: Next, run by Lord Simon Wolfson (pictured), will own 74% of the rescued fashion firm, with the rest owned by Joules founder Tom Joule
Next, run by Lord Simon Wolfson, will own 74 per cent of the business, with the rest owned by Joule.
Wolfson has picked up swathes of the High Street in recent years, including chunks of Reiss, Gap UK, Victoria’s Secret and Jojo Maman Bebe, rolling the brands out on Next’s powerful Total online shopping platform.
Next also has a partnership with Laura Ashley to sell home products online and in stores.
Last month, Next bought collapsed online furniture retailer Made out of administration for £3.4million.
The deal for Joules followed weeks of wrestling over the wellies and countryside clothing retailer, which went bust last month after it was unable to repay a bank loan.
It has issued a string of profit warnings, having faced huge increases in shipping and other costs. Next saw off rivals thought to include Mike Ashley’s Frasers Group and Hobbs owner The Foschini Group.
It immediately closed 19 shops but said that it would keep around 100 of its 124 sites open.
It will also keep on 1,450 of Joules’ 1,600 staff, averting a feared wave of layoffs in the run up to Christmas.
Next also bought Joules’ head office for £7million in a huge boost for Market Harborough in Leicestershire, where Joules was founded in 1989.
Joule said that the deal protects staff, customers and the town where the business was founded. He said: ‘After three years away from the operational side, I’m truly looking forward to inspiring teams with clear direction to excite and recapture the imagination of the customer again.’
Next was in talks with Joules this summer about a £15million investment in exchange for a 25 per cent stake, but that fell through.
Wolfson said: ‘We are excited to see what can be achieved through the combination of Joules’ exceptional product, marketing and brand building skills with Next’s Total Platform.’
Next’s shares were up 0.7 per cent, or 40p, to 5814p yesterday.
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